1. Enter your pension balance. We can only calculate for pensions that have not yet been accessed, so please bear this in mind when entering your balance.
2. Check the tax-free cash available. Under current legislation you can take up to 25% of your pension tax-free, as a lump sum or in portions.
3. Tell us how much tax-free and taxable cash you would like to take.
4. Check the calculations to see how much tax you'll pay and the amount you can expect to receive.
The drawdown calculator applies an emergency tax code. We will always apply an emergency tax rate on withdrawals until we receive your tax code from HMRC directly, so please bear this in mind before you start planning drawdown with PensionBee. It's possible that you'll overpay tax, and in this instance you should contact HMRC directly to claim your money back. You might also underpay, and in this case HMRC will adjust your tax code or contact you to make up the difference. To discover more about tax rates and how they can impact on your withdrawal, watch our video explainer on drawdown tax.
We have assumed you have not started accessing your pension yet and are over the age of 55. In accordance with HMRC guidelines we apply an emergency 'Month 1' tax code. This means you only get one twelfth of the available tax allowances, which may result in you being overtaxed or undertaxed in this illustration. We have assumed that you are not subject to our early withdrawal fee of £150, which applies when your pot has been with PensionBee for less than a year and you wish to withdraw it in full.
Drawdown comes with a number of pros and cons, and it isn't the right option for everyone. Watch our video explainer to see whether it's the right choice for you.
Looking to drawdown?
- Combine your old pensions into one simple plan
- Invest with one of the world’s largest money managers
- Make paper-free online withdrawals from the age of 55
- Pay just one simple annual fee
Capital at risk