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    • Home • Advice • Common questions

    Can you take your 25% tax-free lump sum from multiple pots?

    03 July 2024

    Question by Boring Money reader

    Hi,

    I have three pension pots and I want to know, do I have to amalgamate them before I can take the 25% tax-free lump sum or can I take 25% from each one of the pots?

    Thanks.

    Answered by Lee Wells

    You do not need to amalgamate your pots to take your tax-free lump sum.

    You can usually take up to 25% of the amount built up in any pension as a tax-free lump sum. The most you can take across all is currently £268,275.

    If you hold a protected allowance, you may be able to take from your pensions tax-free, but you will need to calculate this.

    When you come to withdraw additional income, it may be in your best interests to amalgamate if it would reduce charges or provide more suitable income options.

    Answered by

    Lee Wells

    Managing Partner - Financial Planner

    When Lee got his first job in the 90’s his father said ‘you should go to see my financial adviser’ (he didn’t’ know he had one). Lee dutifully went to see him and was converted by the common sense advice he was given on saving and investing for his future. He liked it so much he joined the company so he could help other people learn how to invest. Lee now runs a company passionate about providing value for money advice on a whole range of areas.

    Important stuffHolly and the team have worked in the finance industry for many years but we are not regulated to give you personal financial advice. For every story on this website about a good investment, or something which went up by 10% or made someone £200, we could also share a story about a bad investment, something which fell in value or lost someone £200. We aim to provide general information and pointers – and btw we are totally agnostic about which providers you might pick – but if you have complex affairs, want personalised advice or need specific recommendations, please look at advice pages and see if regulated digital or traditional financial advice would be the best solution for your needs. Boring Money Ltd is a limited company registered in England and Wales under registration number 09459832 and we have our registered office at 10 Lower Thames Street, London, England, EC3R 6AF.
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    Boring Money Ltd is a limited company registered in England and Wales under registration number 09459832 and we have our registered office at 10 Lower Thames Street, London, England, EC3R 6AF.