Glossary - Pension freedoms
Description
Pension freedoms introduced in 2015 are UK rules that give individuals aged 55 and over greater flexibility in how they access their defined contribution pension savings. Rather than being required to buy an annuity, individuals can take lump sums, use income drawdown, or combine multiple options, subject to tax.
Alternate Names
- Defined contribution pension
- Tax-free lump sum
- Uncrystallised funds pension lump sum (UFPLS)
- Income drawdown
