Continue your plan
Useful next calculations
Rates & sources2026/27
User-entered drawdown stress model. Tax-free cash is deducted from the invested pot and capped by the remaining lump sum allowance entered; returns are assumptions, not forecasts.
| Band / figure | Rate |
|---|---|
| Standard lump sum allowance | £268,275 |
| Usual tax-free proportion | up to 25% |
| Returns, charges and inflation | entered by you |
| Withdrawal tax | not modelled |
Source: GOV.UK — pension lump sum allowance — source checked for 2026/27.
When to use this calculator
- Before choosing between saving, investing or changing a contribution.
- When you want to compare cautious, base and optimistic return assumptions.
- When you need a projection before making a longer-term decision.
- When you want to see whether starting earlier or contributing more changes the outcome more.
A realistic UK planning example
Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.
| Input | Value |
|---|---|
| Pension pot before tax-free cash (£) | 250000 |
| Tax-free cash to model (%) | Enter your own figure |
| Your remaining lump sum allowance (£) | Enter your own figure |
| First-year gross withdrawal (£) | £35,000 |
After entering these figures, review tax-free cash modelled, opening drawdown pot and baseline pot duration together rather than in isolation. Then rerun the tool with one input adjusted.
How to read your results
Tax-Free Cash Modelled
Review this figure alongside your gross income so you can understand deductions before the tax year closes. It is a planning estimate, not a filed return.
Opening Drawdown Pot
The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.
Baseline Pot Duration
The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.
Early-Fall Stress Duration
The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.
Baseline Pot at Age 80
The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.
Stressed Pot at Age 80
The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.
Baseline Pot at Age 90
The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.
Stressed Pot at Age 90
The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.
Net Assumed Return After Charges
A projected outcome under the growth rate you entered. Real-world returns fluctuate, so also check a more conservative assumption.
Method & assumptionsAuthoritative sources
This stress tester starts with the pension pot entered and deducts the tax-free cash percentage modelled, capped by the remaining lump sum allowance entered. That fixes the previous misleading assumption that the full pre-lump-sum pot remained available for drawdown.
The baseline applies the entered return and charges each year before taking the withdrawal. The stress case applies the entered market fall in the first year, then returns to the same long-run assumption. If selected, withdrawals increase with inflation. Values at ages 80 and 90 make the effect of an early fall visible rather than calling a smooth projection sustainable.
Returns are not forecasts and real sequencing is more complex than one early fall. Tax on withdrawals, asset allocation, State Pension, other income, provider rules, MPAA effects and protected lump-sum allowances are not calculated. Check your available lump sum allowance with providers and use Pension Wise or regulated advice before accessing a pension.
Common mistakes
- !Assuming a constant return without checking a more conservative growth rate.
- !Forgetting ongoing contributions, fees or tax wrappers where relevant.
- !Focusing only on the final balance instead of the path required to reach it.
- !Ignoring the drag of charges over a long period.
What to do next
- Test a cautious, expected and optimistic growth rate.
- Compare this result with related savings or retirement tools before committing more money.
- Consider charges and any tax wrapper that applies.
- If the projected balance falls short, increase the contribution until the result meets your goal.
Frequently asked
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