Pension Tax-Free Lump Sum Calculator UK
Work out how much of your pension pot you could take as a tax-free lump sum. Under current UK rules, you can usually take 25% of your pension pot tax-free from age 55 (rising to 57 from 6 April 2028).
Your details
The current value of the pension pot you want to calculate for. Check your latest pension statement or log in to your provider's website.
Your results
Your figures appear here as you fill in your details.
This calculator provides an illustration based on the standard 25% tax-free entitlement. Your actual entitlement may differ if you have defined benefit pensions, lifetime allowance protections, or other special circumstances. This is not financial advice.
How much of my pension can I take tax-free?
Usually up to 25% of each defined contribution pension pot, from age 55 (57 from 6 April 2028). The total tax-free cash across all your pensions is capped at £268,275, the lump sum allowance, unless you hold an older protection. Anything you take beyond your tax-free amount is taxed as income at your normal rates.
How do final salary pension lump sums work?
A final salary (defined benefit) scheme pays a yearly pension, so there is no pot to take 25% of. Instead you can usually give up some of that pension in exchange for tax-free cash, called commutation, at a rate the scheme sets. Ask the scheme for a retirement quote showing the lump sum and reduced pension, or an adviser can request it.
How this works
Under UK pension rules for the 2026/27 tax year, you can take up to 25% of your defined contribution pension pot as a tax-free lump sum. This is sometimes called the "Pension Commencement Lump Sum" (PCLS).
The calculation is simply: Tax-free amount = Pension pot x 25%
The remaining 75% stays in your pension and is subject to income tax when you withdraw it. You can access your pension from age 55, rising to age 57 from 6 April 2028.
If you have multiple pension pots, each one has its own 25% tax-free entitlement. There is an overall limit of £268,275 on tax-free lump sums, called the lump sum allowance (unless you have certain protections). Source: GOV.UK: Lump sum allowance.
Final salary (defined benefit) pensions work differently. They don't have a pot to take 25% of, so this calculator doesn't apply to them. See "How do final salary pension lump sums work?" above.
Last updated . Figures are UK-specific — check current rates on GOV.UK before acting.