Crystallisation

The term ‘Crystallised’ or ‘Uncrystallised’ refers to whether an individual has or has not received benefits from any pension they may have. The definition of ‘Crystallised’ is where an individual has received benefits from their pension fund.

If an individual has received any form of benefit in relation to their pension savings, their funds will be deemed as ‘Crystallised’ and this means they are only able to take an income from the remaining funds, which will be taxed in line with their annual income from all sources (employment, pension income or savings).

The definition of ‘Uncrystallised’ is where an individual has not taken benefits from their pension fund. If an individual has not taken any benefit, their funds are classed as ‘Uncrystallised’ and they will be able to take a tax free lump sum or an element of their future pension income ‘tax-free’.

Please contact the Crystal Administration Team with any questions about ‘Crystallisation’.