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Pensioners: Lump Sum Payments

Volume 489: debated on Thursday 19 March 2009

To ask the Secretary of State for Work and Pensions what estimate he has made of the percentage of retirees who took a 25 per cent. tax-free lump sum from their pension fund on retirement in the latest period for which figures are available. (264777)

No information is available about the percentage of retirees taking a 25 per cent. tax free lump sum from their pension fund on retirement. For occupational schemes, it is a matter for the scheme to decide whether to offer a lump sum and, if so, how much it should be within the tax rules. For personal and stakeholder pensions, it is for the scheme member to decide whether to take a lump sum, and, if so, what proportion of the fund, subject to the 25 per cent. limit.