Pension commuting

**Pension commuting** refers to the option available to pension scheme members that allows them to convert a portion of their pension benefits into a lump sum payment upon retirement. Instead of receiving the entire pension as regular income, individuals can “commute” part of their pension for immediate cash, which is often tax-free up to a certain limit. This option provides retirees with greater financial flexibility, enabling them to cover large expenses, invest, or manage their finances according to their personal needs.