Pension Income Drawdown Calculators
To manage one’s drawdown pension effectively there are a number of calculations and scenarios that one needs to be able to work out. These vary from the simple, ‘How long will my Pension last?’ type query to detailed income scenario planning to take account of inflation, fees, investment growth and tax rates. There are a host of pension income drawdown calculators on the web and many of them are excellent – we provide links to some of them at the bottom of this article. But I found that they seldom did precisely what I needed to manage my own specific circumstances, and those that did were scattered across many different sites and were produced by different providers.
So on this page you will find links to a selection of calculators that we have created at The UK Pensions Blog that we hope will answer the vast majority of your ‘What If?’ questions about Pension Drawdown (just click on the Calculator title). Our calculators will answer questions such as:
I want to take my entire pension at once. How much tax will I pay if I have a pension pot of £x and am a 20/40/45% tax payer. How much cash will I actually receive after tax has been deducted?
I don’t want to go into drawdown yet but I may want to dip into my pension pot from time to time to make a one-off purchase (such as going on a cruise to celebrate my retirement). If my cruise costs £x, how much do I need to withdraw to cover the tax that my provider will deduct before giving me the money? If I then withdraw £x, what will be left in my pension pot once the tax has been deducted?
I want to make sure that the monthly income from my pension pot will not run out before l do. This calculator uses the Office for National Statistics Life Expectancy tables to tell you what you life expectancy is and then works out how much you can take as monthly income from your pension pot to ensure that your income does not run out before you do.
I don’t want to go into formal drawdown but I do want to use my pension to provide me with a monthly income, keeping as much of the tax free element invested for a s long as possible. I can do this using the UFPLS scheme. This calculator allows you to look at the impact on your pension pot of the following options:
- The impact of various different tax rates
- The impact of taking different amounts of net income
- How many years your pension pot will last if you take a specific net income each period
- What impact different investment growth rates will have on the longevity of your pension pot
I want to model the impact of different inflation rates on the real money value of my income.
Links to other Calculators
CompareDrawdown.co.uk has a visually appealing calculator which compares most of the prepackaged drawdown plans available from providers. It also allows you to see how long your income will last.
Hargreaves Lansdown has a calculator that will allow you to see on a simple but effective graph the impact of varying rates of investment growth on your drawdown. If you want to see a paper based version of your drawdown forecast they will create a bespoke and very comprehensive drawdown illustration for you and send it to you in the post. You don’t have to be one of their clients and you can apply for it here.