The Future Pensions Act will soon make it possible to receive up to 10% of your personal pension pot on your retirement date. We call this a lump sum. You can spend the lump sum on whatever you like, after withholding tax. No start date has been announced for this option yet. It is expected that this option will become available from 1 July 2026 at the earliest.

Withdrawing a lump sum has advantages and disadvantages
By withdrawing a higher lump sum, your income will be higher on a one-off basis in the first year, and the pension benefit will be lower every year thereafter. This is because you have already

withdrawn an amount from your pension pot. It will also affect your tax return and any allowances or other subsidies you receive, because your annual taxable income will be higher on a one-off basis.

Make sure you get good advice before making this choice
On the what will change? page under "Expected lump sum benefit option at retirement," you can read more about the lump sum. This is also where we will inform you if the Senate agrees to introduce the Lump-Sum Act. And if and when a start date is announced.

Do you have any other questions?
Please do not hesitate to contact us. You can call us or send us an email. We would be happy to help.