What’s a UFPLS and is it the same as a FLUMP?

I’m interested in using one of my smaller pensions to take a few lump sums when I’m in retirement. Should I be looking at income drawdown or would this count as a UFPLS (and is this the same thing as a FLUMP)?

Question asked by Mrs EJ Morgan
Need Pension Advice?
Call us on 02084327333
First Name

Answered by Tom Conner

One and the same: UFPLS and FLUMPS

In April of 2015, Chancellor George Osborne’s much-trumpeted new pension freedoms came into force. They provided a long overdue revamp to the UK’s lumbering pension regime and in doing so launched two new types of income drawdown.

By adding a raft of new access rights, the new rules replaced ‘flexible’ and ‘capped’ income drawdown with the new ‘flexi-access drawdown’. This confers great flexibility when it comes to taking lump sums.

You can choose to take up to 25% of your chosen pension pot as a tax-free lump sum (or more if you have a protected lump sum), or to take all of your pension pot in cash with the first 25% tax free, and pretty much anything in between, thanks to the flexibility it offers to choose your own level of withdrawals.

The new rules also introduced an alternative form of drawdown which focuses purely on lump sums. Unfortunately, it’s referred to as taking an uncrystallised funds pension lump sum or a UFPLS – which is quite a mouthful! (In this instance, ‘uncrystallised’ pension funds mean those that haven’t already been placed into drawdown.) For ease, numerous senior pension industry figures have now adopted the more user-friendly name of a ‘FLUMP’ (even though it’s not a perfect acronym).

With a FLUMP, each lump sum payment that’s drawn down will be 25% tax free, with the remainder subject to income tax at your marginal rate. So far, FLUMPS have proved to be the most popular option with recent HMRC research illustrating that since the new freedoms came into force, more pension savers have employed this route to access their pension benefits than any other. All this means that ‘FLUMPing’ your pension is no longer something to worry about!

pension lump sums
tax-free lump sums
lump sums and income drawdown
This information does not constitute financial or other professional advice. You should consult your professional adviser or contact us directly on 02084327333 should you require financial advice. It is important to ensure any insurance policy you take out is suitable for your needs.
Start your journey today...
  Find out how a Drewberry financial adviser can help you reach your destination by making the most of your finances.
Call us on 

Frequently Asked Pensions Advice Questions

I know that you have to pay income tax on your pension income, but will I also have to pay National Insurance...
I have started drawing my pension but with the new pension freedom rules I can see me wanting to top...
I’m looking to set up a new pension for myself and wanted to know which private pension fund is...
Is there a particular age I can take money out of my personal pension? Is it fixed at state retirement...
Need Help? Live chat now and get an instant answer from our Experts...


Our Latest Reviews
Kevin Paul

Excellent service renewing our medical insurance, professional advice, good rates found and excellent professional after service, highly recommended.

Max Edgar

Nadeem was brilliant. He was very patient and worked very well with me to come up with the best solution possible for my budget. Perfect solution. Thank you very much.

Aidan Smyth

Dealt with me promptly and provided me with the most cost-effective option consistent with my requirements. Very pleased and thank you.

We are rated 4.9/5 based on 1129 independent client reviews.
To read more of our independent client reviews click here →
4.93 / 5 Average
1,222 Reviews
Overall Rating
Really, really helpful! Stopped me from signing up with an unhelpful company, and did basically all of the legwork for me in signing up with the right one. I can't have been the most helpful client as I'm 19 and only just started looking into it last week, but he took all the questions in stride! Put up with me turning to ask my dad questions every 2 minutes as well. I was helped by 2 workers; Sam and Nick. Thank you very much to both!
L Finch
Overall Rating
Good communication and follow ups. Friendly. A thorough research for my insurance needs.
Overall Rating

Sam Barr-Worsfold was very helpful and provided excellent customer service. Sam discovered I was paying too much premium for my current cover. Sam recommended and helped moved to a new cover with lower premium that provided the level of cover (terms required stated in the provider's policy) I wanted. I recommend highly recommend Sam and Drewberry Insurance. Thank you Sam.
Overall Rating
Thorough, knowledgeable and great communication
Overall Rating
Went through each policy in detail and made sure I was getting the correct one for me