PCLS
‘Pension commencement lump sum’. This is the official name for the tax-free cash you can take when you start to access your pension (from age 55, rising to 57 in 2028).
The PCLS is usually limited to 25% of the value of your pension. Once you take your PCLS, you need to choose an income option for the rest of your pot. With a SIPP you can buy an annuity, go into drawdown, or combine the two.
Learn more about your options at retirement or get guidance by contacting the government’s Pension Wise service if you’re over 50.
Popular terms
This is a limit on the total tax-free lump sums that can be paid from your pensions both in your...
When you access your pension, you can usually take up to 25% of the value tax-free. The lump sum allowance...
A simple, low-cost pension where you choose from four AJ Bell fund options.
Money paid in is automatically invested...