How does pension lump sum work? Is it possible to get more than a 25 percent lump sum? The answer is YES, and I explain how in this step by step guide.


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TIMESTAMPS:
0:00 Start
1:58 How Does Pension Lump Sum Work?
2:36 What Is An Annuity?
3:02 What Is UFPLS?
3:33 What Is Flexi Access Drawdown & How Does It Work?
5:48 How Can You Take More Than 25% Tax Free Lump Sum?
7:42 Using Pension Lump Sum To Reduce Income Tax On Withdrawals
8:39 Using Pension Lump Sum To Take A Tax Free Income


**ABOUT THIS VIDEO**
Many people are aware that 25% can be drawn out of their SIPP, personal pension or employer sponsored money purchase pension scheme TAX FREE, but they don't always know how this works.

When you take a tax free Pension Commencement Lump Sum, you have to choose which income vehicle you are going to use. This could be either:

Annuity
Uncrystallised Funds Pension Lump Sum (UFPLS)
Flexi Access Drawdown

In this video I describe how each of these vehicles works and how you can increase the amount of pension lump sum that you receive.

Understanding UK pensions and the tax planning opportunities available is a key part of personal financial planning - the basics are all covered in this 'Pensions Explained' video.