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Pension withdrawal tax calculator
Have you considered taking all or some of your defined contribution pension(Help?)as a cash lump sum? You normally need to be over 55 years old to do this. You will also need to consider how much tax you might pay. It could make a big difference to your plans!
If you're unsure what your options are when it comes to accessing your pension pot, visit Using my pension money
Step 1: Simply input the information needed below.
Step 2: Review your results and compare them to taking other amounts. If you're making a pension withdrawal for the first time, it's likely you will be placed on an emergency tax code. As well as producing results based on standard rate tax, this calculator will show what the effects would be if an emergency tax code were to be applied. The figures represent amounts you may have to pay within the tax year 06 Apr 2021 to 05 Apr 2022.
Defined contribution pension
A defined contribution pension is where you and your employer, and possibly a third party like your spouse or civil partner can all make agreed contributions to your pension fund. By the time you retire, the size of the pension fund will depend on contributions made, length of time invested, investment returns and charges taken.
Defined benefits pension scheme
This is a pension scheme in which the members are entitled to a certain level of pension benefit. It is defined by a formula which uses the member's length of pensionable service in conjunction with their salary to help determine benefits upon retirement. A final salary pension scheme is probably the most common type of defined benefits pension scheme.
Uncrystallised funds pension lump sum
An uncrystallised funds pension lump sum (UFPLS) is a type of payment that enables you to access your pension pot flexibly without first creating a flexi-access drawdown fund. The UFPLS can be paid from part – or all – of your uncrystallised fund, with 25% tax free and the other 75% taxable at your marginal rate.
The Personal Allowance is the amount of taxable income a UK resident individual can have in a tax year before they begin to pay income tax on any income above that figure. For the tax year starting in April 2021 it is £12,570, regardless of an individual's age. It can be reduced or lost altogether once an individual earns more than £100,000 p.a.