Home
Back
Total Income = Drawdown Income + State Pension
| From: | To: |
Pension drawdown allows you to take income from your pension pot while keeping the remainder invested. Combined with the UK State Pension, this forms your total retirement income, providing financial stability during retirement years.
The calculator uses a simple formula:
Where:
Explanation: This calculation helps you understand your total monthly or annual retirement income from both sources.
Details: Calculating your total retirement income is crucial for budgeting, tax planning, and ensuring your income meets your retirement lifestyle needs without depleting your savings too quickly.
Tips: Enter your planned drawdown income and your expected State Pension amount. Both values should be in pounds sterling. The calculator will sum these amounts to show your total retirement income.
Q1: What is the current UK State Pension amount?
A: The full new State Pension is £203.85 per week (2023/24 tax year), but the amount you receive depends on your National Insurance contribution history.
Q2: How much can I take from my pension drawdown?
A: There's no limit on how much you can withdraw from your pension pot, but you should consider sustainable withdrawal rates to avoid running out of money in retirement.
Q3: Is drawdown income taxable?
A: Yes, drawdown income is subject to income tax, but 25% of your pension pot is usually tax-free. The State Pension is also taxable income.
Q4: When can I access my pension drawdown?
A: You can usually access your pension pot from age 55 (rising to 57 from 2028). The State Pension age is currently 66 for both men and women.
Q5: Should I get financial advice before using drawdown?
A: Yes, pension drawdown decisions are complex and have long-term implications. Professional financial advice is strongly recommended.