Take your whole pension pot in one go


You can take your whole pension pot as cash.

  • You take your whole pot in one go.
  • 25% is tax free, the other 75% is taxed.

You pay tax when you take money from your pot. This is because when you’re paying into your pension you get tax relief on your contributions.

This calculator will not calculate tax accurately for individuals living in Scotland as income tax calculations are different. Get an estimate of how much tax you’ll pay.

Estimate what you’d get after tax


Taking a large sum of cash from your pot can mean you pay a higher amount of tax.

Paying tax

Your pension provider will take off the tax you owe before they pay you the cash.

The cash you take will be added to any other income you have over the tax year, e.g. money from work, savings and benefits.

You may pay emergency tax when you take money from your pot which you can claim back.

If your provider doesn’t pay your emergency tax back automatically, you can claim it back from HM Revenue and Customs.

Book a free Pension Wise appointment to find out more about what you can do with your pot.

Continue to pay in

If you have more than one pension pot, you can take the whole amount from one and continue to pay into others. You may have to pay tax on contributions over £4,000 a year (known as the ‘money purchase annual allowance’ (MPAA)).

This includes your tax relief of 20%. For example, to get a contribution of £4,000 you would only have to pay in £3,200.


Taking a large sum of cash from your pension pot could affect your entitlement to any benefits.


Beware of pension scams contacting you unexpectedly about an investment or business opportunity that you’ve not spoken to them about before. You could lose all your money and face tax of up to 55% and extra fees.

Next steps

  • Ask your provider if you can take 25% tax free.
  • If you want to reinvest the money, talk to a registered financial adviser first.