How much tax-free cash can I withdraw from my pension and when?

Currently you can take 25% of most defined contribution (DC) pensions as tax-free cash whenever you choose, once you reach age 55. From April 6th 2028 this will be age 57. 

You can also take tax-free cash when you take benefits from defined benefit (DB) schemes. This is normally up to 25% of the deemed value of your DB pension, and it can mean you give up some of your pension income to raise the lump sum, or be a separate benefit. Although it may be tempting to take the maximum amount as soon as possible, it’s important to consider how this might affect the tax on pension withdrawal for the remaining funds.  

Your adviser can explain the potential drawbacks and suggest some more tax-efficient ways of managing your wealth. You can also use our pension withdrawal tax calculator to get an idea of how much you might have to pay.