PCLS after age 75: Everything advisers need to know

Pension commencement lump sums are complicated

clock • 4 min read

Caitlin Southall gets technical about pension commencement lump sum rules and how they apply to clients aged over 75…

The pension commencement lump sum (PCLS) can be complicated to understand, especially for those clients who are over age 75. There are some PCLS rules that will apply regardless of a client's age. PCLS can only be paid from uncrystallised pension benefits, and it must be taken in ‘In conjunction with becoming entitled to a relevant pension' (for example, the purchase of an annuity, designation of funds into flexi-access drawdown or taking pension income from a Defined Benefit scheme). In simple terms, PCLS is limited to the lower of either: 25% of the value/notional value of the pensi...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Transitional tax-free amount certificates – what, who, when and how

Transitional tax-free amount certificates – what, who, when and how

Regulations came into effect from 6 April 2024

Martin Jones
clock 28 January 2025 • 4 min read
'Persistent' pensions gender gap to become more 'acute', MPs told

'Persistent' pensions gender gap to become more 'acute', MPs told

Industry says issues are becoming more ‘acute’ for younger generations

Martin Richmond
clock 23 January 2025 • 5 min read
Financial heavyweights join forces against chancellor's IHT/pension plans

Financial heavyweights join forces against chancellor's IHT/pension plans

AJ Bell, Quilter, Hargreaves Lansdown and Interactive Investor CEOs send joint letter

Jenna Brown
clock 22 January 2025 • 2 min read