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In the 2014 Budget, the Chancellor of the Exchequer proposed a revolutionary range of changes to the taxation rules when accessing benefits from ‘money purchase’ pension arrangements.

The reforms were effective from 6 April 2015. Members have the following options, subject to what the scheme offers under its rules:

Uncrystalised Funds Pension Lump Sum ('UPFPLS')

Small pot lump sum

Pension commencment lump sum (PCLS) (if selected), plus the balance to Flexi-Access Drawdown or the purchase of a lifetime annuity (including a flexible annuity)/scheme pension.

For more information on the options available from April 2015, click here. You can find out which of these options Scottish Widows can offer you by clicking here. This link provides some useful case studies around the options and issues you need to be aware of. The options offered by Scottish Widows may not suit your needs and you may wish to seek independent financial advice, especially if you are considering Flexi-Access Drawdown or the purchase of a lifetime annuity. If you do not have an independent financial adviser you can find more information on how to find one at

The Government has established a guidance service called Pension Wise to give free, impartial guidance on accessing money purchase pension savings which you can access as you approach retirement. However, please note this not regulated financial advice.

This guidance may be accessed online at, or by booking a face-to-face or a telephone appointment.