The Taxation of Pensions Act 2014 allows pension savers who have reached pension age to draw from their pension funds without limit from 6 April 2015.
Savers making use of the new pension freedoms are said to have ‘flexibly accessed pension’. Uncrystallised Funds Pension Lump Sums (UFPLS) is a simpler way of drawing out all funds being accessed in one go, compared with receiving a pension commencement lump sum and then asking for the whole of a flexi-access drawdown fund to be exhausted.
This technical briefing details the rules regarding Uncrystallised Funds Pension Lump Sums.
"By providing a simpler way of drawing funds in one go, the Government has allowed the possibility of a pension scheme acting more like a bank account."