Pension Flexibility Boosts Tax Refunds for UK Seniors 60,000 UK pensioners claimed tax refunds in 2023-24 Pension freedoms (2015) allowed over-55s 25% tax-free lump sum Average refunds rose £280 to £3,342 11,700 pensioners reclaimed £5,000+; 2,400 received £10,000+ HMRC says flexibility doesn't increase tax payments Unused funds face inheritance tax from 2027 Rising lump-sum withdrawals may increase emergency tax cases. Tax | Pensions | UK United Kingdom HM Revenue and Customs Spokesperson 3 weeks ago