The Partial UFPLS calculator provides an indication as to how long a pension fund is sustained based upon;
- An expected net growth rate, and
- Regular Uncrystallised Fund Pension Lump Sums (UFPLS) amounts are taken.
- These will generate the required taxable gross income, and the 25% Tax-Free Lump Sum payment payable in addition.
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 calculator would therefore be suitable for those clients who are targeting a level of taxable income so, for example, clients who;
- want to remain a non-taxpayer
- Want to keep within basic rate tax, or
- Do not want their income to go above £100,000 to retain their Personal Allowance
- Do not want to pay Additional Rate Tax on their income.
The 25% tax-free lump sum payment could be treated as tax-free ‘income’.
