Pension withdrawal tax calculator

Have you considered taking all or some of your defined contribution pension 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 2024 to 05 Apr 2025. Tax rules are dependent on individual circumstances and are subject to change.

Step 1 of 2

Pension withdrawal

Enter the cash lump sum amount you want to take from your pension pot within the tax year 06 Apr 2024 to 05 Apr 2025

This could include any salary, state pension and income from a defined benefit pension scheme but excludes savings and dividend income.

Tax-free cash

We assume the maximum amount of tax-free cash you can take from your total pension pot is 25%.

Have you previously taken tax free cash from this pension?

What does uncrystallised mean?

  • If you have only taken UFPLS UFPLS Tooltip withdrawals, and/or pension withdrawals that included 25% tax-free cash, then your uncrystallised pension pot is simply your remaining pension pot.
  • If you've previously taken pension withdrawals which were made up of more than 25% tax free cash, then you will have money within your pension that will now be fully subject to income tax when you withdraw again. This is because you've already used your tax-free allowance on this money. The money is now fully subject to income tax and is known as your 'crystallised pension pot or drawdown pot'.
  • The remaining money in your pension, if any, is known as your ‘uncrystallised pension pot'. You can still take 25% tax-free cash on any withdrawals from this pot.

Results are based on the assumption that this total includes all defined contribution pension pots you hold.

This calculator is based on general information including the standard Personal Allowance and tax bands used by HMRC for 06 Apr 2024 to 05 Apr 2025 tax year using UK rates for England and Northern Ireland. Scottish and Welsh income tax thresholds may differ.

It's designed to help you by producing an illustrative example of how much tax you may have to pay. This is not a personal recommendation.

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.

Personal allowance

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 2024 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.