Pension drawdown glossary
Taking a lump sum straight from a pension that has not yet been moved into drawdown. Usually 25% of each payment is tax-free and the rest is taxed as income. Some platforms charge per UFPLS payment.
Source: MoneyHelper: taking your pension as multiple lump sums · 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.