UFPLS PENSION CALCULATOR – LUMP SUM WITHDRAWAL
I Want to Withdraw a ‘One Off’ Lump Sum
You may not want to spend your whole pension on a Lamborghini but it is quite possible that before you commit to a drawdown scheme (where you typically take your 25% allowance up front), you may wish to withdraw a lump sum for a special occasion. For example, a survey for Admiral suggested that over 30% of new pensioners would splash out on the holiday of a lifetime, such as going on a world cruise to celebrate their retirement.
Provided you have not entered a drawdown scheme you can take a lump sum out of your pension pot using the UFPLS scheme (in which the first 25% of your withdrawal is tax free and the remaining 75% is taxed at your marginal rate).
You will therefore need to withdraw more than the cost of your cruise to take account of the tax that will be deducted by your pension provider before giving you the money. This calculator works out how much you will need to withdraw to cover the tax bill, and what you will be left with in your Pension pot after the withdrawal.