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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).

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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.

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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 this works

Under current UK pension rules (2025/26 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 (unless you have certain protections).

Last updated . Figures are UK-specific — check current rates on GOV.UK before acting.

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