Immediate Vesting

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.


Depending upon the level of Flexi Access Drawdown (FAD) income and rate of increase input, the calculator will show the initial level income as a percentage of the net cost of the pension contribution.

Of course, depending on the level of tax relief on the contribution, and the tax rate of the client when receiving the FAD income, the net rate of income return can be better than other investments.

The calculator also shows the cash flow situation of the FAD fund depending on the net growth rate assumed.