Can I give up some of my pension to obtain a lump sum?

11:40, 29 Jun 2009

On retirement you will be given the opportunity to exchange some of your pension to receive a tax free lump sum.

You will be able to take up to a maximum of 25% of the capital value of your pension benefits as a tax free lump sum or, if lower, 25% of the lifetime allowance less an adjustment for the value of any other pension benefits you are already drawing.

For each £1.00 of annual pensiongiven up you will receive £12.00 of lump sum

You may not reduce your pension below your Guaranteed Minimum Pension (GMP) .

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