Post Retirement Pensions

The lifetime allowance (LTA) was abolished on 5 April 2024 which means there are no limits on any funds used to provide a taxable pension income. However, there is a limit on the amount of tax-free lump sum (Lump Sum Allowance) payable to the client during their lifetime, and a limit on the amount of...

Post-April 2006, clients may be entitled to Pension Commencement Lump Sum (PCLS) of 25% of their fund value – subject to a maximum fund of their Standard Lifetime allowance. Protected PCLS However, at A Day (6th April 2006), certain clients they may have had a PCLS entitlement of more than 25% of their fund, or...

The objective of the PCLS Defined Benefit calculator is to provide the client with an indication of their maximum expected Pension Commencement Lump Sum (PCLS) entitlement at retirement from their Defined Benefit scheme. The level of Defined Benefit pension that the client will receive when they retire is based on their length of service and...

The Apportion PCLS calculator provides an indication of the amount of Pension Commencement Lump Sum (PCLS) that each scheme has to pay. If a client has multiple ‘occupational’ pension schemes for the same employment, at retirement the Pension Commencement Lump Sum (PCLS) has to be apportioned between each of those schemes so that each Scheme pays its appropriate...

The UFPLS Options calculator will provide an indication of the amount of income tax paid by the client if the entire money purchase pension fund is withdrawn as an Uncrystallised Fund Pension Lump Sum (UFPLS). Emergency Tax Code (Month 1) basis The UFPLS Options calculator will also show the amount of tax to be paid under the emergency tax...

The Immediate Vesting calculator demonstrates the net cost of the pension contribution after deducting the marginal rate of tax relief and the 25% Pension Commencement Lump Sum (PCLS). Due to the effective rates of return, when a client reaches retirement and requires additional income, they could consider an ‘immediate vesting’ pension plan. Output Depending upon the level of...

At retirement, a client will normally have the option of taking either PCLS or Pension. To assist in making this choice, the PCLS or Pension calculator will aim to provide an indication of the age at which the Pension Commencement Lump Sum (PCLS) will be exhausted having been used to fund the reduction in pension....

The Annuity Comparison calculator will compare the different levels of annuity income payable each year depending on whether the income chosen is: It is possible to have a spouses/ dependents pension of 50%, 66.67% or 100% of a member’s pension. The member’s income could also be guaranteed for 0, 5 or 10 years. Output The calculator shows the cumulative...

The Income Deferral calculator provides a basic comparison of the level of income at outset and the increased ‘deferred’ income, and whether the increased amount is sufficient to make up for the income not received during the deferred period. This calculator should be able to assist those clients who have the option of either; Therefore the clients will...

The Maximum Drawdown Income calculator provides an indication of the client’s maximum ‘capped’ drawdown income at the date of retirement.It can also provide a comparison of income from the previous review and show any change. The calculator is only relevant for those individuals whose ‘capped’ drawdown plans started before 6 April 2015 and have not withdrawn income that...

The Flexible Pension Withdrawals calculator provides an indication as to how long the fund and income will last depending upon; Background The Pension Wise website outlines 6 steps that can help a client understand how to turn their pension pot into income for their retirement. Step 3 is to plan how long their money will last. This...

The Retirement Options calculator provides a comparison of; If tax-free lump sum has not been taken at outset, then a comparison could also be made with; You can choose which retirement options you wish to compare. The input screen will show comparison graphs of net income each year, cumulative net income, death benefit (after tax), and...

The Partial UFPLS calculator provides an indication as to how long a pension fund is sustained based upon; Phase / Partial UFPLS This is an alternative retirement option that the client might want to consider where they do not wish to take all their Pension Commencement Lump Sum (PCLS) and want to ‘phase’ taking their retirement benefits. This...

The Income Sustainability calculator will show clients’ expected age at the date of death using the Office of National Statistics (ONS) latest statistics table for the United Kingdom (2021-2023). By inputting the client’s age, sex, investment fund, expected net growth rate, and regular annual withdrawal amount, the calculator will show the age at which the fund...

The Recycle Drawdown Income calculator provides an indication for clients who are not taking the maximum income from their drawdown plan, the advantage of ‘recycling’ unused drawdown income amounts back into a pension to generate further Pension Commencement Lump Sum (PCLS)  to be paid when the pension plan is crystallised later – which is better than receiving...