Estimate tax-free cash and the pension remaining. Use this page when you are comparing taking benefits now against leaving money invested for later income.
RETIREMENT OPTIONS
Pension lump sum calculator
Estimated result
£75,000
- Estimated tax-free amount
- £75,000
- Potentially taxable amount
- £0
- Pot remaining
- £225,000
The lump sum allowance and protections can change the tax-free amount. Taking benefits can have wider tax consequences.
See how much tax-free cash you might be able to take and what remains in the pension pot after a lump sum.
Estimate tax-free cash and the pension remaining. Use this page when you are comparing taking benefits now against leaving money invested for later income.
On a £300,000 pension pot, a 25% lump sum would suggest £75,000 of tax-free cash, subject to allowances and protections. The remaining pot can still produce income later, but the choice changes the size of the future fund immediately.
- The lump sum allowance and any protection can change the tax-free amount.
- Taking benefits can affect future tax position, retirement income and contribution rules.
- Different schemes and retirement products can apply different rules to the same headline pot.
SOURCES & REVIEW
Checked against official guidance
Last reviewed 1 September 2026 · Rule version GB-2026.27.1
Daily/weekly source monitoring. If a source changes, the affected rule set is reviewed before publication.
All source links are kept visible so you can verify the figures used on this page.
Source line: Pension lump-sum assumptions are checked against GOV.UK pension tax guidance and the current UK ruleset.
GOV.UK: Tax when you get a pension ↗Sources, methodology and update policy →Report an issue or correction →WHY RESULTS DIFFER
Why two users can see different results
Why the result can differ
Different tax codes, payroll periods, Scottish bands, pension methods or lender assumptions can change the outcome.
One-off bonuses, pay frequency, overpayments, allowances and reliefs can move the result away from a simple annual estimate.
Where a rule depends on eligibility or legal status, this page shows an estimate and links to official guidance.
This section is intentionally repeated on key tools so the explanation stays near the result instead of being hidden in a separate policy page.
COMMON QUESTIONS
Frequently asked questions
Is 25% always tax-free?
Not always. Tax-free cash depends on current allowances and any protections.
Should I take the lump sum immediately?
That depends on your retirement plan, tax position and income needs.
Does taking cash reduce future income?
Usually yes, because money removed from the pot is no longer available to fund retirement income.