Getting started with the retirement calculator

The question you are really asking

You do not wake up wondering what your pot will be worth on a Tuesday in 2043. You wonder whether you can stop work, take £30,000 or £40,000 a year home, and still sleep at night when you are 85.

Most pension calculators answer a different question. They project your pot on the day you retire, or quote gross figures that do not match what you spend.

caniretire.uk starts from take-home pay. You set the net income you want. We work out the gross draw, the tax, and what happens when state pension or other income kicks in. Then we keep going through drawdown, year by year, to see if the pot actually lasts.

The right question is not "what will my pot be worth at 65?" It is "what does it feel like to spend it from there?"

Plan in net income, not gross guesses

Your target is annual take-home income. Money in your pocket after tax. The calculator solves for the pension withdrawals required to hit that figure, so the numbers line up with your budget and payslips.

The income slider sits against UK tax thresholds, so you can see when your draw pushes you into basic or higher rate. If your target is more than the pot can sustain, the tool shows a sustainable net income figure and lets you apply it in one click.

From today through drawdown

The projection starts at your current age, not retirement day. Your pot grows with contributions and returns while you are still working.

After you retire, it keeps compounding while you draw down. Withdrawals, tax, inflation, and returns interact each year until your plan age. You see which years are tight and when the pot runs out, if it does.

Pension withdrawals cannot begin before pot access age (55 by default, adjustable in Assumptions). If you need income before then, use the cash buffer options below.

UK tax and the 25% tax-free allowance

The model uses UK income tax bands and the personal allowance, aligned with 2025/26. You can compare two approaches to tax-free cash:

• Lump sum: take up to 25% of the pot tax-free at retirement (capped at £268,275), then draw the rest under normal rules.
• Phased: take 25% tax-free from each withdrawal over time. Changes how long the pot lasts and how much tax you pay later.

Layer in other income streams

Most plans are not pot-only. Under Advanced, you can add:

• State pension at the age and amount you expect. Include it in your net target, or model pot-only drawdown first and layer state pension on when it arrives.
• Partner's state pension for household income (taxed on their record in the model).
• Defined benefit pension from a chosen age.
• Annuity from part of your pot at retirement (a planning assumption, not a provider quote).

Each stream reduces what you need from flexible drawdown. The income mix chart shows how much of your lifetime income comes from the pot vs guaranteed sources.

Cash buffer: bridge early retirement or cut tax

ISA or other savings outside your pension can fund your target net income without a pot withdrawal. Three modes:

• Retirement bridge: live from ISA before pension access age, so you can stop work earlier.
• Mitigate tax: top up from ISA to limit pension withdrawals and aim for zero-tax years where feasible.
• Custom schedule: choose the ages your cash buffer is used.

The buffer has its own line on the chart, separate from your pension pot.

Inflation on spending and on the pot

Raise or lower a flat inflation assumption to stress-test spending power. Or toggle simulated UK inflation: a model calibrated to ONS CPIH rates (1989–2025) with year-by-year volatility, not a smooth straight line.

Withdrawals can rise with inflation each year or stay at a fixed nominal figure. Either way, the chart shows today's money alongside headline numbers. Trust that view for lifestyle planning.

Year-by-year transparency

Every year from now through your plan age is broken down: pot balance, withdrawals, state pension, annuity, DB income, cash buffer, tax paid, and net income. You can see when the pot runs out, if it does, and your lifetime tax bill.

Assumptions are editable in the Assumptions panel. Share results encodes your scenario in the URL for bookmarking or sending to someone else. We do not store your inputs on a server. See the about page for more.

caniretire.uk is an educational tool, not regulated financial advice. Tax rules and investment returns change; always verify figures with an FCA-authorised adviser before making decisions.