This is an example only and we’ve used the following assumptions:

that you take 25% of your pension pot as a tax-free lump sum.
that you have the full standard personal allowance and no other allowances, for example marriage allowance.
that you have other income of £16,000 a year.
The tax figure shown is a calculation of the tax that would be due on the cash withdrawal, based on our assumptions. It is not a calculation of your personal tax liability.

The amount of tax you pay depends on your individual circumstances and will take into account any other income you receive, including the state pension. For the purpose of this calculation we assume that you have other income of £16,000 a year. (For example, State Pension, investment income or other earnings).

Where the total income, including your withdrawal, is above the personal allowance taper threshold, the appropriately reduced personal allowance has been used in this calculation.

Tax rates and allowances may be subject to change in the future.

If you live in Scotland or Wales you may pay a different rate of income tax.

The example does not take into consideration your personal tax code.

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Retirement income calculator