The most common way to take money out of a defined contribution pension. You move some or all of your pot into a drawdown fund, which is called designating or crystallising it, and you can normally take up to 25% of the amount you crystallise as tax-free cash at that point. The rest stays invested, and it’s taxed as income whenever you choose to draw it.

Those are two separate decisions. Taking the tax-free cash on its own doesn’t change how much you can still pay into a pension. Drawing taxable income from the fund does, and it cuts your annual contribution limit to £10,000.