Your pension consists of two parts: a tax-free part and a taxable part. The taxable part makes up 75% of your pension, while the remaining 25% is tax-free (up to a limit of £268,275).

When you start to withdraw tax-free cash, we'll create a drawdown pot to help you keep track of your taxable pension balance and any remaining tax-free cash. For every £100 you take as tax-free cash, we'll move £300 into a drawdown pot.