Useful next calculations
Rates and sources, 2026/27
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 or 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 worked example
These are the example figures the calculator opens with.
| Input | Value |
|---|---|
| Pension pot before tax-free cash (£) | £250,000 |
| Tax-free cash to model (%) | 0% |
| Your remaining lump sum allowance (£) | £268,275 |
| First-year gross withdrawal (£) | £15,000 |
For those figures the calculator returns:
- Tax-free cash modelled: £0.00
- Opening drawdown pot: £250,000.00
- Baseline pot duration: 21 years
- Early-fall stress duration: 15 years
- Baseline pot at age 80: £106,302.30
- Stressed pot at age 80: £0.00
- Baseline pot at age 90: £0.00
- Stressed pot at age 90: £0.00
- Net assumed return after charges: 4.21%
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.
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 & assumptions
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.