Pension drawdown glossary
A payment of your whole pension as a lump sum when a doctor confirms you are expected to live less than a year. It is usually tax-free before 75, within your Lump Sum and Death Benefit Allowance, and can be paid before the normal minimum pension age.
Source: GOV.UK: individual lump sum allowances · Last reviewed 24 September 2026
See every term in the A–Z glossary. Definitions are general information for the 2026/27 tax year, not personal advice.
Important: The value of investments can fall as well as rise. You may get back less than you invest. Tax rules can change and benefits depend on individual circumstances. This is not financial advice.