"Can I take some or all of my 25% tax-free lump sum up front and leave the rest invested?"

If you want to take a tax-free lump sum but leave the remainder of your pension invested, you’ll need to designate your pension savings for flexi-access drawdown.

You can usually take up to 25% as a tax-free lump sum either in small chunks or in one go. Under HMRC rules, for every £1 you take as a tax-free lump sum, £3 will be moved to a flexi-access drawdown account that we’ll set up for you. Every withdrawal you then make from your flexi-access drawdown account will be taxed as earned income at the highest rate you pay. Any money not taken, remains invested giving it a chance to grow.

When you move your money into flexi-access drawdown, you can take your money through one or more lump sum withdrawals, or you can set up a regular monthly income.

You must take at least £200 each time you take a lump sum from your flexi-access drawdown account.

For a regular income you’ll need £1,500 in your flexi-access drawdown account to first set this up. The minimum amount you can take each month is £50.

Find out more and choose how to take your retirement money.