What is pension crystallisation?
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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.
Last reviewed:
Reviewed by Kaiser Khan
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.
Primary source: gov.uk/tax-on-your-private-pension/what-you-can-do-with-your-private-pension-pot
Part of our Pensions & retirement
This quick answer sits inside our wider pensions & retirement hub — with sub-guides, calculators and step-by-step explainers on the same topic.
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