PCLS
‘Pension commencement lump sum’. This is the official name for the tax-free cash you can take when you start to access your pension (from age 55, rising to 57 in 2028).
The PCLS is usually limited to 25% of the value of your pension. Once you take your PCLS, you need to choose an income option for the rest of your pot. With a SIPP you can buy an annuity, go into drawdown, or combine the two.
Learn more about your options at retirement or get guidance by contacting the government’s Pension Wise service if you’re over 50.
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