# What is pension crystallisation?

> Quick answer · Last updated 4 July 2026

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## In short

Moving part or all of your defined contribution pension into drawdown or annuity so you can take benefits. Usually up to 25% of each crystallised amount is tax-free; the rest is taxed when taken.

You can crystallise in stages to spread tax-free cash across tax years.

Uncrystallised funds stay invested until you need them.

See pension crystallisation explained guide.

## Related

- [Pension crystallisation guide](https://moneyguide.org.uk/pensions/pension-crystallisation-explained/)
- [Tax-free lump sum](https://moneyguide.org.uk/answers/how-much-of-my-pension-can-i-take-tax-free/)

## Primary source

gov.uk/tax-on-your-private-pension/what-you-can-do-with-your-private-pension-pot

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Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.