Thank you all for taking the time to reply. Just so you know I took voluntary redundancy last April after 36 years. Was lucky to get a job practically straight away. But can draw my company pension a final salary scheme in November at 55. I am still working and intend to for a few years yet. Just wasn't sure if the lump sum part is tax free.
I took 25% of my company scheme because company offered an incentive for people to reduce companies liability.
But you will need to pay tax on any interest on the on earning from your invested remaining 75% depending on your total earnings as with any other earnings.
Getting 3% on mine but it's locked away for a coupe of years but can be accessed at any time if required. With inflation so low you are not going to get an excellent return but better than putting it under the bed