What are the pension access options at 55 (57 from 2028)?

Options from pension age: (1) Flexi-access drawdown: take 25% tax-free, invest rest, draw income flexibly. (2) Annuity: convert all or part to guaranteed income. (3) UFPLS: take lump sums where 25% is tax-free each time. (4) Scheme pension (DB). Mix and match across different pension pots.

What is capped drawdown?

Pre-April 2015 drawdown funds remain in capped drawdown with an annual income limit based on 150% of GAD annuity rate. Can be converted to flexi-access at any time. Converting to flexi-access triggers the MPAA of £10,000 for future pension contributions.

When does the Money Purchase Annual Allowance apply?

MPAA reduces pension contribution limit from £60,000 to £10,000 when you take flexible income from flexi-access drawdown or an UFPLS. Triggered by the first income payment. Taking the tax-free cash only (crystallising into drawdown without taking income) does NOT trigger MPAA.

UK Pension Commencement Drawdown Calculator (Flexible and Capped)

Calculate UK pension commencement lump sum (25% tax-free) and income drawdown options. Flexi-access drawdown vs capped drawdown (pre-2015 policies). GAD rate for capped drawdown. MPAA trigger consequences.

Principal ($)

Annual Rate (%)

Years

Compounding / Year

$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Calculate UK pension commencement lump sum (25% tax-free) and income drawdown options. Flexi-access drawdown vs capped drawdown (pre-2015 policies). GAD rate for capped drawdown. MPAA trigger consequences. Use the pension commencement drawdown result to inform your calculation.

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