What is Tax-free lump sum?
In the UK you can usually take part of the amount built up in a pension as a tax-free lump sum, up to an overall cash limit called the lump sum allowance. The rest of what you take from the pension is taxed as income.
Why Tax-free lump sum matters
It is one of the main reasons a pension can leave more after tax than the same savings taxed as income in full.