Treasury confirms overhaul of pension tax free lump sum rules

clock

The Treasury is laying its proposed legislation to give savers more freedom over how they take a tax-free lump sum from their pension pot before parliament today.

Under current rules, from the age of 55 people can take 25% of pension savings as a tax-free lump sum. But, as announced at Budget 2014, in future savers will be able to dip into their pension p...

To continue reading this article...

Join Professional Pensions

Become a Professional Pensions Lite Member today

  • Three complimentary articles per month covering the latest real-time news, analysis and opinion from the industry
  • Receive important and breaking news stories via our two daily news alerts
  • Hear from industry experts and other forward-thinking leaders

Are you a trustee, investment consultant or in-house pension and benefit scheme professional? You can apply for full complimentary access here

Join now

 

Already a Professional Pensions
member?

Login

More on Law and Regulation

SPP: Small pots policy settled as details debated

SPP: Small pots policy settled as details debated

Helen Rowan looks at how legislation to enact small pot consolidation is progressing

Helen Rowan
clock 20 February 2026 • 3 min read
Pension transfer reform risks falling short without alignment

Pension transfer reform risks falling short without alignment

Patrick Heath-Lay says outcomes for savers could improve if regulators act together

Patrick Heath-Lay
clock 13 February 2026 • 4 min read
Why we need system-wide reforms to modernise how pension transfers work

Why we need system-wide reforms to modernise how pension transfers work

Lisa Picardo calls for reforms including a 10-day ‘Pension Switch Guarantee’

Lisa Picardo
clock 12 February 2026 • 5 min read
Trustpilot