What is Considered ‘Flexible Access’ for Pension Benefits?

Under the current rules, ‘flexibly accessing’ your pension benefits covers:

• Taking an uncrystallised funds pension lump sum (UFPLS) or a standalone lump sum;
• Having flexible drawdown before 6 April 2015;
• Taking an income payment from a drawdown plan set up (or converted to flexible drawdown) after 5 April 2015;
• Exceeding the income limits from a drawdown plan set up before 6 April 2015;
• Taking an income payment from a scheme pension with 12 or fewer members or from a flexible annuity;

However, it does not include:

• Taking tax-free cash and no income;
• Taking a pension as a ‘small pot’ (i.e. less than £10,000 in value);
• Taking income from a ‘capped drawdown’ plan set up before 6 April 2015, which remains within the capped limits;
• Taking a pension as an annuity or scheme pension.