Do you want to take a tax-free cash lump sum with your retirement income?

You can choose to have a higher monthly income and a lower cash lump sum – or vice versa. But there’s a limit on the amount of benefits you can take as tax-free cash. We’ll tell you this when we send you your retirement quote. To see how taking more or less tax-free cash might affect you, use our Benefit Calculator.
This is the only time you can take a tax-free cash lump sum – when you retire and take your monthly income too.

You can’t come back and do this after you fully retire. If you don’t take a cash lump sum you’ll get a higher monthly income instead.

Useful Resources:

Visit taking your benefits and savings for more information Save for later
Use our Benefit Calculator to see the effects of taking more or less tax-free cash if you've received a retirement quote Save for later
Visit the MoneyHelper website to understand the tax you'll pay in retirement and be proactive with your tax planning Save for later
If you want to seek guidance or take financial advice on the options available to you, visit our guidance and financial advice page where you’ll find a range of resources to support your planning and you can also find information on how to access a financial adviser. Save for later

When you retire, you’ll get an income for life and a one-off, tax-free (up to a limit) cash lump sum of three times your pension. You can choose to have a higher monthly income and a lower cash lump sum – or vice versa. It’s up to you.