UK flexi-access drawdown rules
Flexi-access drawdown was introduced under the Pension Freedoms Act 2015. You can take up to 25% tax-free lump sum (up to £268,275 LSA cap) and leave the remaining 75% invested in funds, bonds, and cash.
Withdrawals from the remaining 75% are treated as taxable income under PAYE. Taking your first taxable flexible withdrawal triggers the £10,000 Money Purchase Annual Allowance (MPAA).
Worked example: UK flexi-access drawdown
With a £250,000 pension pot, taking £62,500 (25%) tax-free cash leaves £187,500 in flexi-access drawdown. Withdrawing £9,000 annually (4.8%) with 5.0% growth and 2.5% inflation adjustment is projected to sustain income for 24 years.
Inputs for the uk pension drawdown calculator
Pension Pot & PCLS
Enter starting pot and choose whether to withdraw 25% tax-free cash upfront.
Withdrawal & Market Assumptions
Set annual income and assumed net growth.
CALCULATOR QUESTIONS
UK pension drawdown calculator questions
What happens to my UK drawdown pot when I die?
If you die before age 75, your beneficiaries can inherit the remaining pot completely tax-free. If you die after age 75, beneficiaries pay income tax on withdrawals at their marginal rate.
What triggers the Money Purchase Annual Allowance (MPAA)?
Taking taxable income from a flexi-access drawdown fund triggers the £10,000 MPAA, capping future tax-relieved DC pension contributions.