How to withdraw your People's Pension: members apply online from age 55 (57 from 2028), and the options open depend on the size of the pot.
What you can choose turns on whether you hold more than £10,000 with the scheme. Pension Wise, run by MoneyHelper, gives free, impartial, government-backed guidance on the options before you decide. If your pot or plans are unusual, an FCA-authorised adviser calls back at no charge once this page's form is completed.
When you can start taking money out
People's Pension tells members: "You can start to take it from age 55 (rising to 57 in 2028)". GOV.UK says the timing "depends on your pension scheme’s rules" and is usually 55 at the earliest; the scheme's ill-health page puts the rise to 57 in April 2028. Most people start taking a workplace pension in their mid-60s, the scheme says.
Your selected retirement age is not a gate. The scheme says changing it "won’t stop you from accessing your pension money", and that its main effect is on how your investments are managed. It also says you can start while still working. Before 55 is a narrower route, covered in early withdrawal penalties and below for ill health; pensions at 55 sets out the general age rules.
Which options open up at which pot size
These are the minimums on the scheme's options overview as shown in June 2026; its pages on regular income and smaller amounts say at least £10,000 instead, so check a pot of exactly £10,000 in your online account.
| Option | What the scheme prints |
|---|---|
| Whole pot in one go | Under £10,000, you normally stop paying in first and the account closes afterwards. Over £10,000, the account stays open. |
| Tax-free lump sum first | More than £10,000 saved, or £2,000 if you have taken money before. |
| Regular monthly income | Same pot minimums, at least £1,500 in a flexi-access drawdown account, and at least £50 a month. |
| Smaller lump sums (UFPLS) | Same pot minimums, one amount a month, at least £2,000 each time. |
| Annuity | Not sold by the scheme. |
You can combine them: the scheme says "You don’t have to choose just one option." For the income route it asks how much to move into the drawdown account; 25% of that is paid as a tax-free lump sum and the rest can be drawn as income. Payments are usually made on or shortly before the 28th of the month, and you can choose a level income or one that rises with the Consumer Price Index. A one-off lump sum from that account means stopping the monthly income first, and each must be at least £200.
The scheme does not sell annuities. It works with Retirement Line, which it says is free to members from 55, and warns: "Once you take out an annuity, you cannot switch options." Compare the routes in annuity or drawdown, and see UFPLS and setting up drawdown for the mechanics.
Taking money early because of serious ill health
If this is about your own health, the scheme acknowledges it may be a difficult time and points to further help from MoneyHelper, the NHS and Citizens Advice. For an ill-health request it sends a letter explaining the options and a medical form for your doctor. If you were employed within the last year, your employer must also complete a declaration. The scheme's tests: ill health stops you doing your job, you are unlikely to work again before State Pension age or your selected retirement age, and you have stopped working in the job linked to the pension. Someone under 75 who is expected to live less than 12 months may, it says, be able to take the whole pension tax-free, as long as the total across all their pensions is not more than £1,073,100. Cashing in a pension because of ill health goes through the wider rules.
The online application, step by step
- Log in to your account. The scheme says the process "takes about 15 minutes to complete".
- Have four details ready: other pensions you have taken money from, any means-tested benefits you receive, whether you have registered for lifetime allowance protection, and your bank account details.
- Pick your option. For a regular income you can instead phone 0300 2000 555.
- Expect checks: the scheme may confirm your identity electronically or ask for supporting information, to protect against fraud.
If you have recently transferred in, HMRC rules may stop you taking a whole pot under £10,000: five years from a transfer in, or three from a transfer out, according to the scheme. If your own numbers sit awkwardly against these minimums, the enquiry form here sets up a free phone call with an adviser who can go through them.
Tax, as GOV.UK describes it
On lump sums, GOV.UK prints: "You can usually take up to 25% of the amount built up in any pension as a tax-free lump sum. The most you can take is £268,275." A protected allowance may raise that figure, and "Tax is taken off the remaining amount before you get it." A large withdrawal may mean Income Tax at a higher rate, and extra tax owed after the tax year ends.
For a pot worth up to £10,000, GOV.UK says you can usually take it in one go as a "small pot" lump sum, of which 25% is tax-free when you have not drawn on that pension already; small pot rules explains the limits. Money left invested can fall as well as rise, and you may get back less than you paid in. Claiming the tax-free lump sum covers that step.
People's Pension withdrawals: questions answered
Does People's Pension offer drawdown?
Yes, in the form of a flexi-access drawdown account. Pension drawdown explains how that works generally.
Can I cash in a small pot in one go?
The scheme says you can take everything, with 25% normally tax-free. Under £10,000 you normally stop paying in first, so employer contributions and tax relief stop, and the account closes.
How long until the money reaches my bank?
The scheme says having your details ready for its identity checks can save time; for the timing on your own claim, an adviser can talk it through on a free call-back, requested with this page's form. The scheme prints 0300 2000 555 for questions about setting up a regular income. How long a withdrawal takes covers the general picture.
Do I have to tell my other pension schemes?
The scheme says: "Within 91 days of receiving notification from us, you must tell the scheme administrator of any other pension scheme that you are a member of that you’ve flexibly accessed your pension." It adds that HMRC may fine you if you fail to.
Do I have to stop work first?
No: the scheme says you can start while still working. It also warns that a regular income may trigger the money purchase annual allowance, which reduces how much you can pay in each year and still get tax relief.
Checking your own pot before you log in
Your latest statement or online balance decides which rows of the table apply, so check that first. A Pension Wise appointment costs nothing; neither does a call-back from an adviser arranged via this page's form, if you would like pots, tax and benefits weighed together. For how the scheme's charges and transfer terms sit beside Nest and others, see comparing The People's Pension and its fees. Be cautious of unexpected calls about your pension: the FCA's pension scams page shows what to check.
Sources: People's Partnership, archived member pages captured 18 April to 18 June 2026 (ill health 20 April, flexible-access FAQ 18 May); GOV.UK, What's tax-free; MoneyHelper, Pension Wise (archived 15 September 2026); read 26 October 2026.