Explain the concept of the tax-free lump sum from pensions.

• A. A portion of the pension fund must be invested in safe assets before withdrawal.
• B. A portion of the pension fund can be taken as a tax-free lump sum on crystallisation, subject to applicable rules and thresholds.
• C. The entire lump sum must be taxed at withdrawal.
• D. Lump sums are only available from DC plans with employer matches.

Answer: (B)