Pension Drawdown Calculator | Money Saving Advisors
Project your retirement income with our drawdown calculator. Plan withdrawals to make your pension last.
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Take the guesswork out of pension tax
Our drawdown tax calculator shows you how much income tax you might pay when you take money from your pension pot. It helps you make better decisions, avoid unexpected tax bills, and plan a more comfortable retirement - without needing a degree in finance to work it out.
If you're drawing from your retirement savings and want to know how much of your pension fund you'll actually keep after tax, you're in the right place.
How the drawdown tax calculator works
Tax rules on pensions can be tricky - so the calculator does the hard part for you. Here's what we need from you:
- Your age and income
This includes your state pension, part-time work, or other taxable income like rental earnings or dividends. - How much you want to withdraw
You can test different amounts to see how much tax applies. It also factors in your tax-free cash, usually 25% of your total pension pot. - Tax bands and thresholds
The tool uses current UK tax year data and bands to give you accurate results.
How the tax calculator helps with planning
It's not just about knowing whether you'll pay income tax - it's about using that knowledge to plan better.
- Avoid nasty surprises
Taking a large lump sum without checking the tax impact can be costly. You may accidentally be put on an emergency tax code, especially if it's your first withdrawal, which could mean you temporarily owe taxes you didn't expect. - Test different strategies
The calculator lets you explore various withdrawal scenarios, showing your net withdrawals after tax. That way, you can choose the most efficient option across one or multiple years. - Get clear, detailed insights
You'll get a detailed calculation results based on your full situation, including other income. This is invaluable when comparing options or discussing your plans with a tax advisor.
Summing up
Our pension drawdown tax calculator is a simple, powerful tool that makes managing your retirement income less stressful. It's like a digital advisor giving you a snapshot of your options, instantly - to help you get the most from your pension while staying on HMRC's good side.
For even more accuracy, try our pension drawdown calculator to work out how much you can withdraw, and speak to a professional for personal advice.
Frequently Asked Questions
Is the tax calculator accurate for everyone?
Our drawdown tax calculator offers a reliable estimate based on the latest tax bands and your personal details, but it doesn't replace personal advice. No financial calculator can account for every situation - like unexpected bonuses, a change to your tax code, or complex income - but they're a great starting point. For tailored guidance, consider speaking to a tax or legal advisor.
Can I use the calculator if I'm still working?
Yes - it's useful if you are. If you're still working part-time or have other taxable income, the calculator factors this in to show your total income and helps you understand how much income tax you might pay on your pension withdrawals. This could help you decide to delay taking money if it pushes you into a higher tax rate.
Does it include the 25% tax-free lump sum?
Yes, our calculator automatically applies the 25% tax-free cash allowance. Whether you take it all at once or in chunks, it helps you understand what part of your withdrawal is tax-free and what part will be taxed, making it easier to plan over several tax years.
Will it show if I'm being emergency taxed?
Not directly. The calculator assumes standard PAYE rates and won't simulate an emergency tax code. But it does show the expected income tax, so if you're charged more than that, it may be a sign of emergency tax - which you can claim back from HMRC using form P55.
Can I use it to plan multiple withdrawals?
Definitely. One of the best ways to use our drawdown tax calculator is to test different withdrawal plans across more than one tax year. This helps you stay in a lower tax rate band and work out how to take from your pension tax-free.
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