"What’s a small pot lump sum and how many of them can I take?"
If you have £10,000 or less in your pension and you want to take it all in one go – you may be able to take it as a ‘small pot lump sum’.
You may be able to take a pension worth £10,000 or less as a ‘small pot lump sum’, as long as you meet all of HM Revenue & Customs’ (HMRC’s) rules about when a small pot lump sum can be taken. There are different rules depending on what type of pension you have:
- For each occupational pension you own (like People’s Pension), you can take the proceeds as a small pot lump sum once you’ve stopped paying in. You can do this once for each pension.
- For personal pensions, you’re limited to taking a maximum of 3 pensions as small pot lump sums in your lifetime.