How much lump sum would you like to take?

When you draw your pension benefits you will have the option to exchange some of your pension for lump sum. The maximum amount of pension you can exchange for lump sum is set by HM Revenue and Customs and is 25% of the capital value of your pension benefits, providing the total lump sum does not exceed 25% of the lifetime allowance, which for the year 2016/17 is £250,000 (£1million x 25%).

If you have previously taken payment of (crystallised) pension benefits you will have already used up some of your lifetime allowance, therefore, the maximum tax free cash you can take will be 25% of your remaining lifetime allowance. For every £1 of pension you exchange you will receive £12 of tax free lump sum.

Your pension fund administering authority should provide you with the option to exchange pension for lump sum when you draw your pension. You must inform them if you wish to take up this option in writing before your pension benefits are paid. You may wish to take financial advice before making your decision and it is therefore important that you contact your pension fund administrator well in advance of your intended retirement date so that they can provide you with the details.

You can use the calculator below to provide you with an estimate of how much lump sum you can take, up to the maximum, and how this affects your yearly pension. Please note, the calculator does not take into account in-house AVCs.

How to use the calculator

Yearly Pension
Enter the amount of yearly pension payable from your chosen retirement date. You will find the yearly pension payable from your normal pension age on your annual benefit statement.

Automatic lump sum
Enter the amount of automatic lump sum payable in respect of your membership up to 1 April 2008. This figure will be shown on your annual benefit statement if applicable. This lump sum is payable automatically i.e. you have to take it. If you joined the LGPS after 1 April 2008 you will not receive any automatic lump sum but you will be able to give up pension for lump sum when you draw your pension.
Your Details
Yearly Pension £ field help
Automatic Lump Sum £ field help
Percentage of benefits to be taken as a lump sum Max 25%
Results
Yearly pension exchanged for lump sum £

Yearly Pension Payable

£

Lump sum provided from exchange of pension £

Maximum Lump Sum payable:

£


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Yearly Pension

Enter the amount of yearly pension payable from your chosen retirement date. You will find the yearly pension payable from your normal retirement age on your annual benefit statement.

Automatic Lump Sum

Enter the amount of automatic lump sum payable in respect of your membership up to 1 April 2008. This figure will be shown on your annual benefit statement if applicable. This lump sum is payable automatically i.e. you have to take it. If you joined the LGPS after 1 April 2008 you will not receive any automatic lump sum but you will be able to give up pension for lump sum when you draw your pension.