BEHIND THE NUMBERS
How this calculation works
Worked example
State Pension is £10,400. A DC withdrawal of £15,489.41 includes £3,872.35 tax-free cash and produces £1,889.41 Income Tax, funding £24,000 net. With zero return, £84,510.59 pension remains.
Example result: £84,510.59
Step 1
Enter each DC fund, savings and future pension income, then set retirement age and the annual net spending target.
Step 2
The planner projects contributions, solves gross DC withdrawals after Income Tax and tax-free cash, and follows the selected withdrawal order.
Step 3
Read the annual schedule for taxes, balances and unfunded spending; compare assumptions and withdrawal policies. The simple drawdown mode remains available.
Assumptions and rounding
- One person; ordinary UK Personal Allowance and non-savings Income Tax bands. Current 2026/27 tax thresholds are held nominally constant in future years.
- DC pension pots are uncrystallised; 25% of each withdrawal is tax-free until the entered remaining £268,275 allowance is exhausted. No early pension access before age 55 in 2026/27–2027/28 or 57 from 2028/29.
- State Pension entitlement and start age come from your forecast; its default is the full 2026/27 weekly rate, not an entitlement finding. Savings returns are after fees and any tax.
Questions about this calculator
Does the tool calculate the gross pension withdrawal needed?
Yes. It solves for the withdrawal that funds the remaining net target after tax and the available tax-free element, then limits it to the remaining pension pots.
Is the allowance-first strategy guaranteed to be optimal?
No. It uses the current year’s unused Personal Allowance before savings to avoid wasting it. Compare the three strategies; future tax, investment outcomes and estate planning can change the best choice.