As you are age 55+ you can access a personal pension. You may be able to access a workplace pension but that will depend on the scheme rules - there are different types of workplace scheme so hard to say if you could or could not access.
With a defined contribution scheme, like a personal pension or SIPP, you can crystallise £80,000 of it, assuming there is at least that in it, and 25% of that, £20k could be taken out tax free. The other £60k would go to a drawdown pot - your provider may had additional fees for putting you in drawdown. You can usually leave the drawdown pot alone but check with provider.
So yes, it may be possible to do.
Why would you do it?
£20k in the pension has opportunity to grow. Over a long period, growth at 5% annual would be very conservative, 7% is probable and it could be higher. Over the last few years pensions have not performed well, so are down in value, so cashing in now locks in any loss. I would avoid locking in a loss.
Once out of the pension wrapper, it is cash and will lose to inflation. Premium Bonds may not give any return, or you may get average luck and get around 4% return, or you may get above average luck and get more.
I would leave the pension alone and see if the markets improve over the next few years before you access it. Unless you have a desperate need for the money.