Receive 10% of your pension in the form of a one-off lump sum payment
As of 2023, you will have the option to withdraw part of your pension in one lump sum when you retire. If this something you would like to do, we will be able to pay a maximum of 10% of your accrued retirement pension to you in the form of a lump-sum payment. So, a lower percentage will be possible too.
Please note that you will pay tax on your chosen amount. You should also be aware that a lump-sum payment of this nature could affect any housing or healthcare benefit you might be receiving. If you opt to receive a lump-sum payment, this will lower the amount of your lifelong pension benefit as well.
The option set out above has been postponed until 1 July 2023
Because the details of the relevant Act are still being determined, the government will not be able to introduce the option on 1 January 2023 as previously intended. As soon as the legislation is clear and its effective date has been finalised, we will let you know. You will then also be able to use the pension planner on My pension to give you an idea of the consequences there will be for your pension if you do opt to receive a lump-sum payment. We will provide you with more detailed information about the above on our website in the near future. You will be able to utilise the ‘lump-sum payment’ option if you are going to retire on or after 1 July 2023.
Because the details of the relevant Act are still being determined, the government will not be able to introduce the option on 1 January 2023 as previously intended. As soon as the legislation is clear and its effective date has been finalised, we will let you know. You will then also be able to use the pension planner on My pension to give you an idea of the consequences there will be for your pension if you do opt to receive a lump-sum payment. We will provide you with more detailed information about the above on our website in the near future. You will be able to utilise the ‘lump-sum payment’ option if you are going to retire on or after 1 July 2023.