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Pension Projection Calculator

Disclaimer: The numbers provided in this calculator are in no way a prediction of future investment performance. The value of your investments can go up and down. Not financial advice!

If you’re on mobile or tablet, you can see the notes on how to use this here

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Calculator Usage:

  1. Don’t use commas in your numbers!
  2. Complete the fields with your personal numbers.
  3. It is already assumed that your salary grows with inflation!
  4. If you don’t have a bonus you can leave those fields blank.
  5. If you’d like to sacrifice everything above the 40% threshold, check that box before clicking the Calculate button.
  6. Likewise, if you’re near or over the 60% tax-trap threshold (currently £100k) and would like to sacrifice everything above that amount then check that box.
  7. You can’t check both boxes.

Pension Options Pop-Up:

  1. Once your results table appears, each row is clickable and allows you to look further into what your pension income could look like after retiring.
  2.  After clicking a row, those numbers will be presented in a pop-up.
  3. If you choose to take the 25% tax-free lump sum, this will reduce the amount available for drawdown.
  4. If you don’t take the lump sum them 25% of your drawdown will be tax-free each year (providing you don’t hit the current limit of £268,275)
  5. The drawdown % is up to you but people far smarter than I have suggested that 4% is a sensible option.
  6. The annual drawdown amount you see is income from your private pension only (i.e. state pension would be claimed on top)

FAQs:

The numbers in the Growth columns assumes 3% inflation already so the numbers you see are at today’s value – the real amount in your pension when you get there is likely to be much higher.

Your salary also therefore assumes growth in line with 3% inflation!

You do not pay National Insurance on retirement income.

You will be taxed at normal income tax rates when you retire and are still entitled to the personal allowance (currently £12,570).

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