Making the decision to take all your pension as a one-off lump sum is called ‘trivial commutation’. The Government has strict rules about who can trivially commute their pension, and it is generally only available for individuals with small pension pots.

You may be eligible to take this lump sum if:

• you’re aged at least 55*, or you’re retiring at an earlier age because of ill-health; and
• the capital value of all your pension benefits (including any other pensions provisions you have and pensions already in payment, but ignoring any State Pension) when added together do not exceed the current HMRC levels (currently £30,000)

You may be able to take the whole of your LGPS pension as a small pot if:

• you’re aged at least 55*, or you are retiring at an earlier age because of ill-health; and
• the capital value of your pension benefits held within the Local Government Pension Scheme (LGPS) does not exceed £10,000

*aged 55 or over (or in the case of a woman who has a Guaranteed Minimum Pension (GMP), is aged 60 or over, or in the case of a man who has a GMP, is aged 65 or over).