Pension/Income Drawdown Calculator
Calculate your retirement income with our free Pension Income Drawdown Calculator
Our Pension Drawdown Calculator will provide you with a guideline figure of what you could expect to receive for your pension annually. Please fill in your details below in order to use our Drawdown Calculator and get all the advice you need for your pension fund from independent financial advisors.
By shopping around you can received up to 40% more income from your pension fund(s)
Remember, by shopping around and comparing the open market you could receive up to 40% more from your retirement income. Use our Pension Drawdown calculator to find out instantly how much you can expect to receive.
Get quick & easy no-obligation quotes.
How Pension Drawdown Works:
Pension Drawdown plans are also sometimes referred to as Income Drawdown, Income Withdrawal, Pension Withdrawal or Pension Release. Since 6 April 2006 the official name for this type of plan is Unsecured Pension (USP) and it allows you to take benefits from your pension funds, from age 50 onwards, without immediately buying an annuity.
Taking the benefits from your pension before the normal retirement age of 60 or 65, is sometimes referred to as “unlocking your tax free cash”. Some people want to unlock their tax free cash early to use the funds to clear debts or repay a mortgage and the present rules allow you to do this from age 50. However this age limit is going to rise to 55 from April 2010, so if you intend, or need, to access your tax-free cash you need to take action sooner rather than later. You do not have to stop work in order to take your benefits. You must bear in mind though, that by taking the tax-free cash (and any income) early you are reducing the funds available for when you retire.
From the time of taking benefits (known as crystallizing your fund) until you reach 75 you can use Pension Drawdown to take both tax-free cash and an income. The fund remaining after taking tax-free cash is still invested as a pension fund, continuing to benefit from a tax efficient environment in the same way that it did prior to taking any benefits. You can take benefits from both Protected and Non-Protected Rights
If you’re in a scheme that doesn’t offer Pension Drawdown but you want this, you can transfer your pension rights to a personal pension scheme. This will let you use Pension Drawdown. To get FREE no obligation advice, please fill out the form, and one of our specialist advisors will be in touch.
Income Drawdown v Annuity
An annuity is a lifetime contract and cannot be changed once started. For example if annuity rates increase you cannot get a better deal. If you are close to the age 70 or more then annuity rates are likely to be favourable for most people. However a person in their mid 50’s or early 60’s may not benefit from a contract that cannot be changed for the rest of their lives.
However if you have a small pension pot and no other means to support yourself an annuity is likely to be most suitable.
Income drawdown offers younger clients in particular more options in retirement and the chance to see their money grow even after they have retired. As long as you understand the risk versus the reward and have a large enough pension plan (£50,000 typically) to absorb costs etc then these are a viable option.
