You can take as many lump sums from your pension pot as you’d like, until you’ve used it all up or decide on another option. The first 25% of every sum you withdraw is normally tax free. You’ll pay tax on the rest. The money you leave in place stays invested, so the overall value of your savings could grow. It’s important to remember, though, that it could fall too.
The money in your pot will eventually run out. So if you want to have enough to fund your whole retirement, you’ll need to budget carefully. Remember that the more you take out, the less money is left to provide a future income.
Whatever you leave in your pension pot stays invested. Your provider will offer you different investment choices with different benefits and risks, and you pick the ones you want. Since the value of investments can go down as well as up, your pension could continue growing, but it could lose value too.
Providers usually charge a fee for running pension pots like this. We would recommend that you take advice on whether it’s the right option for you and, if so, what level of income you should take.
We’d always suggest talking to an expert about your pension options. Our guide to pension help and advice shows you various ways to find one.
Transferring your pot to another provider
Take your pension savings as a number of lump sums: next steps
If you’re ready to take your pension savings as a number of lump sums, our contact centre will be able to help you.
It’s important to remember that we can’t process any requests to access your pension savings until we’ve sent you a retirement pack. If you haven’t yet received a pack, you can request one here.