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Can I Exchange Pension for Cash?

In most cases, on retirement, it is possible for you to give up part of your pension for a tax free pension commencement lump sum.

The amount of the lump sum you can take is dependent upon the level of your pension and your age at retirement. In some circumstances, the amount may be restricted to ensure that a minimum level of pension is paid - you will be notified if this applies to you.

Taking a lump sum reduces your pension. The amount of the reduction depends on your age at retirement, and the value of the lump sum itself. If you exchange pension for a lump sum it does not affect the amount of pension payable to your Widow/Widower/Civil Partner.

You may wish to take Independent Financial Advice before deciding what option is best for you.