Exchanging pension for a cash lump sum
When you retire you will have the option to exchange part of your pension for a tax-free cash lump sum - up to a maximum amount set by HMRC.
This lump sum is known as a “Pension Commencement Lump Sum (PCLS)”.
The terms for exchanging pension income for a cash lump sum may be reviewed and altered by the Trustee from time to time.
It may be possible for you to exchange further pension for a lump sum but this would be subject to tax.
The Trustee currently allow you to exchange your money purchase AVCs to fund your PCLS before having to exchange any of your defined benefit pension to provide the PCLS.
Although, any cash sum taken will reduce your pension, it will not affect any spouse’s or dependant’s pension payable on your death.