There are five general steps you should take when cashing in your pension: 1. Assess your eligibility. Not all pensions can be cashed out. 2. Review your pension plan’s documents to understand how your plan works and what cash-out options are available. 3. Calculate the present value of your pension both as a lump sum and as payments over your expected life expectancy. 4. Consider the tax implications and penalties of a lump-sum payment. 5. Submit a formal request to your pension plan administrator. It’s wise to consult with a financial advisor or other professional for personalized guidance throughout the process.