If you have defined contribution pensions, you can take all of your pension as a lump sum – however, it will incur a heavy tax charge. When you turn 55, you can take up to 25% of your pension as a tax-free lump sum (57 from 6th April 2028).  Whilst some people may have protections in place that allow a higher tax free lump sum, most will in future be limited to the maximum under the proposed Lump Sum Allowance (LSA) of £268,275. Any additional withdrawals will be taxed at the relevant income tax band that year. Lump sum withdrawals are not normally possible within any defined benefit pension schemes, but these may offer a separate tax free cash lump sum as part of the scheme benefits at retirement or allow you to exchange some income entitlement for a cash sum.