Lump Sum

Swapping/exchanging part of your future pension income for a lump sum (or bigger lump sum if you have an automatic lump sum) – every £12 of lump sum costs £1 of future pension income

HMRC set a maximum lump sum (one-off cash payment) you can take from your pension benefits, the lower of:• 25% of the available Lifetime Allowance• 25% of the Capital Value of your pension The Capital Value of a Defined Benefit scheme, like the NHS schemes, is a multiple of the annual pension