PCLS after age 75: Everything advisers need to know

The pension commencement lump sum (PCLS) can be complicated to understand, especially for those clients who are over age 75. There are some PCLS rules that will apply regardless of a client's age. PCLS can only be paid from uncrystallised pension benefits, and it must be taken in ‘In conjunction with becoming entitled to a relevant pension' (for example, the purchase of an annuity, designation of funds into flexi-access drawdown or taking pension income from a Defined Benefit scheme). In simple terms, PCLS is limited to the lower of either: 25% of the value/notional value of the pensi...