Inputs

65
65

The calculator assumes that you and your partner retire at the same time.

Select a standard of living based on the Retirement Living Standards:

0
0

0

0

0
75

0

0

0
75

Results Analysis

You can retire at age:

years months
Age Gross State Pension

i 		Gross Final Salary Pension

i 		Gross Annuity Payments

i 		Gross Pension Fund Income

i 		Gross Other Income

i 		Net State Pension

i 		Net Final Salary Pension

i 		Net Annuity Payments

i 		Net Pension Fund Income

i 		Total Tax Paid

i 		Net Other Income

i 		ISA Withdrawals

i 		Total Net Income

i

Assumptions

These three scenarios are those specified by the Financial Conduct Authority for use in pension illustrations. Select a scenario using the toggle below or use the sliders to set specific values.

i
7%
7%
2.5%

Select a fund charge level from the toggle or use the sliders to set specific values.

1%
1%

The projection end age is the age at which all your funds will be used up in calculating an affordable income from retirement. The Financial Conduct Authority (FCA) specifies that a projection end age of 99 should be used for pension drawdown illustrations. You can change the value below to suit your personal circumstances.

99

Find out what the average life expectancy is for someone of your age and gender using this calculator proivded by the Office of National Statistics.

Scenarios

Stress-test your retirement income by simulating a market crash. Choose the age it occurs and the percentage fall then tick the box to apply the scenario.

60
0%

67

Tax bands are currently frozen until 2028, dragging more people into higher rate bands as earnings rise. Investigate the effect on your retirement income if the freeze is extended beyond this point. Enter the number of additional years to freeze the tax bands.

0

Explore the potential impact of a future reduction in the 25% tax-free lump sum entitlement. Use the slider to adjust the maximum tax-free percentage available on retirement.

25%

Explore the effect of a reduction in the current £268,275 tax-free lump sum lifetime limit. Use the slider below to adjust the limit.

£268,275

Options

If you wish to take a tax-free lump sum out of your fund at retirement, please enter the percentage of your fund you would like to withdraw. The maximum is 25%.

0%

You may wish to increase your pension contributions in the future, for example after paying off a mortgage.

55
£0

You may wish to increase your ISA contributions in the future, for example after receiving a pay rise or finishing other financial commitments.

55

The amount to increase by should be specified in today's money terms.

Select the percentage of salary that you are currently contributing to your pension to instead take as net income and add to your ISA.

0%

Decide whether the model should prioritise using your tax-free personal allowance before tapping ISAs. Keep this switched on for the default optimisation. Turn it off to draw the entire investment income gap from pensions until the fund is exhausted.

Using ISA withdrawals to avoid paying higher rate tax can reduce your overall future tax bill. Use the slider below to set the percentage of the basic rate band to fill up with payments from your pension fund.

50

To observe how different strategies impact your Total Retirement Tax Rate, select a tax chart and watch the Key Figures change as you adjust the slider.

Note that the optimum income mix depends on the assumptions made about future investment returns and inflation.

You can afford more income early in retirement if you specify a reduction in income later in retirement. Indicate the age at which you want a reduction below, along with the percentage reduction. You can specify a second reduction at a later age.

60
0%
65
0%

Enter a minimum balance cushion for your ISA throughout your retirement.

£10,000

Choose how many years of future withdrawals you want to cover with cash inside your pension fund and ISA.

5

65
Final Salary Pension Amount

Enter the early retirement factors used by your final salary scheme below, if they are available. The default factors populated are those used by the Pension Protection Fund. These should be less generous than the majority of schemes and so are a prudent starting point if you don't have your own factors.

1 2 3 4 5 6
4.9% 9.3% 13.5% 17.4% 20.9% 24.3%
7 8 9 10 11 12
27.4% 30.3% 33.0% 35.6% 39.5% 41.8%

Lock in guaranteed income by converting some (or all) of your pension fund into an annuity.

65
0%

Your Partner's Options

If your partner wishes to take a tax-free lump sum out of their fund at retirement, please enter the percentage of their fund they would like to withdraw.

0%

55
£0

You may wish for your partner to increase their ISA contributions in the future, for example after settling other financial commitments.

55

The amount to increase by should be specified in today's money terms.

£0

Select the percentage of salary that your partner is currently contributing to their pension to instead take as net income and add to their ISA.

0%

Choose whether your partner should prioritise using their personal allowance before taking ISA withdrawals. Switch off to have their pension cover the investment income gap until exhausted.

Using ISA withdrawals to avoid paying higher rate tax can reduce your partner's overall future tax bill. Use the slider below to set the percentage of the basic rate band to fill up with payments from your partner's pension fund.

50

To observe how different strategies impact your partner's Total Retirement Tax Rate, select a tax chart and watch the Key Figures change as you adjust the slider.

Note that the optimum income mix depends on the assumptions made about future investment returns and inflation.

Your partner may wish to maintain a minimum balance cushion in their ISA throughout retirement.

£10,000

65
Final Salary Pension Amount

Enter the early retirement factors used by your partner's final salary scheme below, if they are available. The default factors populated are those used by the Pension Protection Fund. These should be less generous than the majority of schemes and so are a prudent starting point if you don't have your own factors.

1 2 3 4 5 6
4.9% 9.3% 13.5% 17.4% 20.9% 24.3%
7 8 9 10 11 12
27.4% 30.3% 33.0% 35.6% 39.5% 41.8%

Lock in guaranteed income for your partner by converting some (or all) of their pension fund into an annuity.

65
0%