Small pots payments  are defined as those valued at £10,000 or less. The rules that apply to small pots payments are as follows:

• a member can take a maximum of three small pots payments from non-occupational pension schemes;
• a member can take an unlimited number from unconnected occupational pension schemes;
• the £10,000 limit is per small pots payment, e. a small pots payment can be taken without reference to the value of the member’s other pension benefits;
• they can be taken once the member reaches minimum pension age
• small pots payments from uncrystallised funds are not tested against the member’s lifetime
• does not need to have any lifetime allowance remaining to be able to take one; and
• they can be paid from both crystallised and uncrystallised