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This income withdrawal optimiser tool will help you demonstrate to clients how they can take retirement income more tax efficiently.
It highlights how you could reduce the amount of tax your clients will pay by maximising the use of available allowances by varying the amount and source of income
This will clear all inputs from the tool. Are you sure?
Figures produced by the Income withdrawal calculator are only illustrative, and for use by financial intermediaries only.
These figures should not be relied on when making financial decisions and do not in any way constitute financial advice.
Any financial advice given by you as a result of using the calculator will remain your sole responsibility and Standard Life will be in no way responsible.
Standard Life accept no liability whatsoever for any losses caused by any action, or lack of action, taken in reliance on figures produced by the calculator.
The calculator does not allow for any lifetime allowance charge which could increase your tax bill.
Not all asset and income types are covered by the calculator and therefore the actual income position and options available to your client may be different which could incur a different tax charge. For example the calculator doesn't account for royalties and income from trusts amongst other income sources.
The calculator assumes all income is registered for the UK tax regime and doesn't account for income which has been taxed in another tax regime.
All calculations in the calculator are based on a single year and assume no other income or tax other than that entered into the calculator.
The calculator does not optimise tax outcomes and outputs are reliant on the inputs chosen, as such the tax positions calculated may not be the most tax efficient in the current year or future years.
The calculator does not account for child benefits which may be payable. By increasing a client's income over the child benefit threshold, a client may receive a reduced child benefit payment.
The calculator does not take into account any National Insurance contributions due with regards to any employed or self-employed income details that you enter.
The calculator assumes there are sufficient funds available to complete your chosen income strategy.
Where there are restrictions (such as age related withdrawals from a pension) the calculator assumes the user qualifies to make the withdrawals requested.
Where tax-free cash is included in the withdrawal it is assumed that the tax-free cash amount is available under the pension and must be taken at the point of crystallisation.
The calculator assumes there are no exit charges on any of the withdrawals made to any of the investments held.
The calculator assumes the income and withdrawals are on an annual basis with no account of previous income taken from any other sources not included within the calculator inputs.
The calculator does not take into account any pension contributions made that extend the size of the client's basic rate band in order to get tax relief
The effect of Gift Aid payments on the basic rate band are not accounted for
Where a client transfers some of their personal allowance to their spouse, the user will have to adjust the personal allowance manually on the calculator.
No adviser charging is allowed for in the calculator
The calculator works on a single point in time basis and therefore any chosen strategy may not be sustainable or maintainable over the long term
The tax calculated assumes that the correct tax code is applied at the time of the withdrawal (i.e. it is not just emergency tax that is applied by the company on withdrawals from a pension pot)
The effect of income tax is not the only consideration when deciding on a withdrawal strategy. Other considerations such as Inheritance Tax, sustainability and the asset allocation of the portfolio should also be considered when deciding where income should be taken from.
The calculations are based on current UK tax law as we understand them.
This calculator calculates the tax applicable at the time of the withdrawal - the actual amount will depend on the actual values of the units encashed
The calculator rounds only the final figure to the nearest £1
The calculator does not take account of any state benefits that you received other than the State Pension amount that is entered
The calculator allocates savings income to the savings rate band before using up the PSA
The 'allowances used' graphs on the final page show the amount of each band and allowance used up.
Where an amount of personal allowance is available, this is allocated against income with regard to S16 ITA 2007
Tax rules and legislation may change. The value of tax relief may change and will depend on your client's financial circumstances. The information we have given is based on Standard Life's understanding of law and HM Revenue & Customs practice at the start of this tax year.
Please note that the calculator does not calculate bond gains with reference to HMRC changes brought in at IPTM3850.