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.
It’s possible that your current pension provider won’t offer you the option of accessing your savings in several lump sums, so you might want to transfer to one who can. Even if your current provider offers this option, others may be able to offer a better deal. It’s worth comparing what different providers can offer. There’s an excellent guide to shopping around on MoneyHelper.
When you’re going through this process, remember to protect yourself from pension scams. Scammers are always trying to find new ways to attack people’s pension savings, and they can send communications that look believable. Don’t fall for ‘unique investment opportunities’ or be pressured into making instant decisions – no regulated provider will ever try to rush you.
The Pensions Regulator offers great advice on how to avoid scams. You can find out more from our Pension Scams page.
Before you make a decision
Check that transferring your pot won’t lose you any special benefits like guaranteed annuity rates. You should check with your provider whether you have any and how it works.
Why take several lump sums?
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.