Increase Your 25% Tax Free Pension Lump Sum | UK Pensions

How does pension lump sum work? Is it possible to get more than a 25 percent lump sum? The answer is YES, and I explain how in this step by step guide.

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This video is for education purposes only and does not represent financial advice. When investing, your capital is at risk. Investments can rise and fall and you may get back less than you invested. Past performance is no guarantee of future results. If you are unsure of what to do, always seek advice from a qualified financial adviser.

TIMESTAMPS:
0:00 Start
1:58 How Does Pension Lump Sum Work?
2:36 What Is An Annuity?
3:02 What Is UFPLS?
3:33 What Is Flexi Access Drawdown & How Does It Work?
5:48 How Can You Take More Than 25% Tax Free Lump Sum?
7:42 Using Pension Lump Sum To Reduce Income Tax On Withdrawals
8:39 Using Pension Lump Sum To Take A Tax Free Income

***ABOUT THIS VIDEO***
Many people are aware that 25% can be drawn out of their SIPP, personal pension or employer sponsored money purchase pension scheme TAX FREE, but they don't always know how this works.

When you take a tax free Pension Commencement Lump Sum, you have to choose which income vehicle you are going to use. This could be either:

Annuity
Uncrystallised Funds Pension Lump Sum (UFPLS)
Flexi Access Drawdown

In this video I describe how each of these vehicles works and how you can increase the amount of pension lump sum that you receive.

Understanding UK pensions and the tax planning opportunities available is a key part of personal financial planning - the basics are all covered in this 'Pensions Explained' video.

[chrisbourne-retirementplanner]

Thanks everyone for such a positive response to this video! Let me know if there are other pension related topics you’d like to see covered in future content 🙂

[assonancex]

I wish this stuff were taught in school. Financial literacy is so important for one's life prospects.

[don-qbxb]

My head is spinning but this is gold. Many thanks.

[lynnrogers]

Absolutely first class. This is the clearest way I've seen it explained.

[roadrunner]

I am not a professional but reasonabley well informed, and have seen this covered before, but this is the best one I have seen.

[jonathanatkins]

A complex issue explained very simply. No flashy graphics just well presented examples that show the principle.

[davidgreen]

Best explanation of pensions and tax efficiency that I have ever seen on YouTube, well done and thanks!!

[andywood]

I'm only 43 so nowhere near retirement yet although hoping that 55 could be the magic number. I've been researching a lot about my pension recently but didn't know this crucial information about how the 25% draw down works. I'm very grateful to you for providing it and in such a clear to understand manner. Thank you

[jasonsmith]

Hi CHRIS ….. thank you very much for this video which is extremely helpful and very informative !!!
In fact I would even go so far to say that this is the clearest best explained video on this subject probably anywhere on the Internet !
I would suggest to most people that they will probably want to watch it several times and it is very easy to get your head round it if one does that .

[garycroft]

This is by a long way the best UK pension planning video I've seen, cuts right through the complexity. Thanks

[barabajagal]

Thank you! I’ve been watching many pension videos, and this has been by far the most useful! Finally some of my questions answered.

[XXXTickerXXX]

I talk to people all day long about their pension withdrawals. I so wish I could explain things like this to them. I think it would step over the implied advice line for me though so we are only allowed to give basic factual information. Superb information though and brilliantly laid out and explained. I wish i had found yours and James Shacks channels sooner. The problem we face - I work for a pension provider - is the amount of people that are terrified of Financial advisers or those that do not have enough wealth for an FA to see them. This sort of information would be invaluable to them but we are not allowed to direct them to it.

[robbobkirk]

Stumbled across this video and despite having watched other content, never knew this information. The example at the end is very useful. Thanks Chris.

[kevinjackson]

By far, the best piece of advice about pensions I've ever seen. I'm 61 and will soon need to decide what to do, many thanks 👍

[david_akerman]

Very clearly explained, well done. I remember as a child learning to count with Cuisenaire Rods (and I'm pleased to see that now, 58 years later, they are still produced and used), and I'm still a visual thinker, so the blocks certainly helped!

[chriscutts]

Thanks Chris this video has been very helpful, I'm 58 and thinking about taking my 25% very soon.

[grantlong]

This is the best video I have seen explaining the tax free methods of a pension draw down. You make some complex and explain it simple. Love it. Thank you.

[pompeymonkey]

Subscribed at 2:46 because you have already explained a few terms about pensions, of which I knew nothing before.

[worigami]

Chris, the clearest explanation I have seen so far.

I turn 55 this year and have been exploring taking a tax-free lump sum from one or more of my plans. Two of my plans are not available any more, Scottish Widows - With Profits Unitised so I have been told they will need to be crystalised and I will have to take the full 25% tax-free from both and not a fixed amount. They'll then be moved to a single drawdown plan. That's to be confirmed when I speak to their pensions expert on the next call.

[sachipatel]

Hi Chris, I stumbled upon this video via YouTube recommendations. I have been thinking about this for sometime now, (even though I have 2 decades before I can withdraw my pension). I have never heard anyone explaining this subject as clearly as you did, especially about UK laws. Clearly there is a huge gap when it comes to USA and UK investment/financial content. Keep up the good content and I will be binge watching your other videos. Thanks