Pensioners: Lump Sum Payments

Stephen Hammond
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.

Ms Rosie Winterton
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.