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Retirement Options Modeller

Please enter the current fund of your Personal Account.

Current Personal Account value

£

Lump sum and annuity

Use the slider below to select the proportion of your Personal Account to take as a tax-free cash lump sum.

25%

Maximum tax-free cash lump sum

£100000

Remaining Personal Account to purchase an annuity

£300000

Uncrystallised Funds Pension Lump Sum (UFPLS)

Use the slider below to select the proportion of your Personal Account to take as an UFPLS.

If you take less than 100% of your Personal Account as an UFPLS, you will be required to transfer the remainder to another approved pension arrangement.

100%

If you are a basic rate tax payer

£340000

If you are a higher rate tax payer

£280000

Click here for more details

Flexi-access drawdown

Use the slider below to select the proportion of your Personal Account you wish to drawdown.

To take advantage of flexi-access drawdown you will need to transfer your Personal Account to a suitable drawdown arrangement.

50%

If you are a basic rate tax payer

£180000

If you are a higher rate tax payer

£160000

Click here for more details

Uncrystalised Funds Pension Lump Sum (UFPLS)

If you are a basic tax rate payer

Amount of UFPLS requested

£400000

Percentage of Personal Account to be taken as an UFPLS

100%

Tax-free element of UFPLS (25%)

£100000

Amount of UFPLS taxed at marginal rate

£300000

Net UFPLS

£340000

Amount of tax to pay

£60000

If you are a higher rate tax rate payer

Amount of UFPLS requested

£400000

Percentage of Personal Account to be taken as an UFPLS

100%

Tax-free element of UFPLS (25%)

£100000

Amount of UFPLS taxed at marginal rate

£300000

Net UFPLS

£280000

Amount of tax to pay

£120000

Flexi-access drawdown

Amount of Gross drawdown payment

£200000

Tax-free element of drawdown payment

£100000

Residual amount of drawdown payment subject to tax

£100000

If you are a basic tax rate payer

Net drawdown

£180000

Amount of tax payable

£20000

Residual Personal Account for future drawdown

£200000

Example of future options:

A) Residual Personal Account available to purchase an annuity

£200000

B) Assumes 3 equal future drawdown payments
(to be taken at your discretion)

Gross drawdown amount

£66667

Marginal rate of tax

20%

Amount of tax payable

£13333

Net drawdown payment

£53334

If you are a higher tax rate payer

Net drawdown

£160000

Amount of tax payable

£40000

Residual Personal Account for future drawdown

£200000

Example of future options:

A) Residual Personal Account available to purchase an annuity

£200000

B) Assumes 3 equal future drawdown payments
(to be taken at your discretion)

Gross drawdown amount

£66667

Marginal rate of tax

40%

Amount of tax payable

£26667

Net drawdown payment

£40000

Click the buttons below for explanations of each option.

Lump sum and annuity

Uncrystallised Funds Pension Lump Sum

Flexi-access drawdown

Cash and Annuity

This is often regarded as the traditional retirement choice that most people are familiar with.

Under this option you have the choice to either:

  • Utilise your Personal Account to provide an annuity; or
  • Elect to withdraw up to 25% of the value of your Personal Account as a cash lump sum (often tax-free) and then purchase an annuity with the remaining Personal Account.

When choosing an annuity many options can be available to you. Common choices available may be whether you wish your annuity to increase in payment or whether you might like your annuity to provide an income for a loved one in the event of your death

This option is usually suitable for members who are looking for a guaranteed income during retirement but may also be looking to receive a tax-free cash lump sum.

UFPLS

You can now take your entire Personal Account as a cash lump sum. This is called an Uncrystallised Funds Pension Lump Sum or UFPLS.

Normally 25% of the cash lump sum will be tax-free with the remained taxed as income.

You are not required under legislation to take your entire Personal Account as an UFPLS. However, under the Scheme Rules, if you only take a proportion of your Personal Account as a cash lump sum, the remainder will need to be transferred to another registered pension scheme or used to purchase an annuity.

An UFPLS could be suitable for those who wish to take the whole of their Personal Account as a cash lump sum.

Flexi-access drawdown

Drawdown is an arrangement that allows you to access a series of lump sums at a time suitable to you whilst keeping your funds invested.

To take advantage of flexi-access drawdown you will need to transfer your Personal Account to a suitable drawdown arrangement.

Drawdown could be suitable for those who wish to use their Personal Account to provide a series of lump sums during their retirement as opposed to a regular income.

The Trustee is not able to provide financial advice and would recommend that you seek independent financial advice. lf you do not have a financial adviser, details of those near to you can be found at register.fca.org.uk.