Retirement Simulator for the United Kingdom

All amounts are in today's purchasing power: nominal returns are deflated by the inflation assumption and contributions are held constant in real terms. State Pension: qualifying years so far as entered from the forecast, else the years since age 22; one more year for each year still worked before the State Pension age; the full new State Pension of 241.30 a week (2026/27) times qualifying years over 35, nothing under 10 years; State Pension age from the legislated timetable (66, rising to 67 for people born from 6 April 1960 by one month per birth month to March 1961, and to 68 for people born from 6 April 1977 the same way); deferral adds 1 % for every 9 weeks past the State Pension age; indexed with the triple lock, so it keeps its purchasing power. Income tax: the State Pension, defined benefit pension, annuities and every withdrawal from a pension in drawdown are taxed as one person's income of the year with the 12,570 personal allowance (tapered by 1 for every 2 above 100,000), the rUK bands (20 % to 37,700 of taxable income, 40 % to 125,140, 45 % above) or the Scottish bands (19 %, 20 %, 21 %, 42 %, 45 %, 48 %); the allowance and thresholds are frozen in pounds until April 2031 and rise with inflation after that; no National Insurance on pensions; a partner is taxed separately on their own income. Pension pots: workplace contributions as the entered percentages of qualifying earnings (6,240 to 50,270) or of the whole salary; SIPP contributions grossed up by the 20 % basic-rate relief, higher-rate relief reclaimed as the tax saved beyond 20 % on the slice of income the contribution covers and saved with the ISA; all pension contributions capped at the 60,000 annual allowance; each pot grows at the pension return until it is accessed at the later of retirement and the normal minimum pension age (55, 57 from April 2028 for people born from 6 April 1971). At access, 25 % is tax-free up to the 268,275 lump sum allowance, either as one lump sum joining the other savings or spread over withdrawals (75 % of each withdrawal taxable, less if the allowance caps the tax-free share); the rest stays invested in drawdown or buys a level, single-life annuity at the entered rate, fixed in pounds and taxed as income. Withdrawal order each year: pensions in drawdown up to each person's higher-rate threshold, then the GIA, then the ISA, then the pensions again; withdrawals are grossed up so the spending target is met after tax. ISA: savings up to the 20,000 allowance, withdrawals tax-free. GIA: the remaining savings; capital gains tax at the entered rate (18 % default) on the gain share of each year's withdrawal above the 3,000 annual exempt amount, with a cost basis of today's value less the unrealised gain share you enter plus every contribution and tax-free lump sum; the basis is nominal, so inflation gains are taxed as in law. The headline income is the highest level monthly spending, in today's money, that the year-by-year run can finance to the plan age without a shortfall in any year; the run at your actual target reports the age at which the capital runs out. A partner is simulated on the first person's age scale with their own qualifying years, claiming age, pots and defined benefit pension; their gross salary counts while they still work, taxed as their own income less employee Class 1 National Insurance (8 % between 12,570 and 50,270, 2 % above). Not modelled: salary sacrifice, the money purchase annual allowance, dividend tax inside the GIA (the CGT rate stands in for both), tax-free cash from a defined benefit pension, guaranteed periods and inflation-linked annuities, means-tested benefits, inheritance tax on unused pots from April 2027. Estimates only, not financial advice. Signed-in users are prefilled from their profile and accounts; until confirmed on the profile, the gross salary is estimated as the monthly net income times 12 divided by 0.75.