Pension taxation calculator

Our pension taxation calculator helps you to calculate how much income tax could be payable by your client if they take all or some of their pension fund as cash.

Using the tool

  • Add the value of the pension pot to be taken as cash.
  • Add any other taxable income they will receive during the tax year, either as previous salary payments, or for any ongoing income they may have.

The tool will then estimate the total tax due on the pension fund withdrawal and any additional tax due on other earned income in the current financial year.

It also breaks down the total, showing their personal allowance, and the actual amount of tax payable at the basic rate, higher rate and any additional tax rate bands.

After these deductions have been taken into account, it will display your client's estimated net payment if they take the whole pension fund as cash.

The tool makes a number of assumptions, which will vary on the basis of your inputs and so we recommend that you familiarise yourself with the full list of assumptions at the foot of the tool. Tax rates and allowances are subject to change in the future.

You can find out more about the Pension Taxation Calculator by reading our guide to the tool.

Please note that summaries can be printed and given to your clients.

What next?

Once your client has a better understanding of their potential tax liability, they can start to consider their options for taking their retirement income. We offer a range of tools and calculators to help them make decisions.