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<p>At retirement individuals have the option of taking up to 25 per cent of their
pension fund as a tax free pension commencement lump sum.</p><p> </p><p>Individuals
at retirement can also take their pension pot as a lump sum:</p><p>· If their total
pension pots under all the schemes they belong to are worth £30,000 or less</p><p>·
Under certain circumstances, one of their pension pots is worth £10,000 or less</p><p>25
percent would be tax free with the rest being taxed at the individual's marginal rate.</p><p>
</p><p>These rules apply to all registered pension schemes and therefore apply to
both defined benefit and defined contribution pensions and to both private and public
sector schemes.</p><p> </p><p> </p>
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