All monetary inputs are in today's money. Inflation applied automatically in projections.
Set your target spending for each 5-year period of retirement. Inflation is applied automatically each year within that period. Leave a period blank to carry the previous amount forward.
Higher spending in early retirement stepping down gradually is a common and realistic pattern — the "smile" theory of retirement spending.
State pension is taxable income but paid gross. The triple lock guarantees rises by the highest of CPI, earnings growth, or 2.5%. Historical average: ~3.5–4%/yr nominal. Default 3.5% is conservative. Age: 66, rising to 67 by 2028.
Based on Vanguard/BlackRock long-run capital market assumptions. Balanced = 60/40 portfolio.
25% tax-free lump sum taken at retirement — set % in Strategy tab. HMRC cap: £268,275.
Most DB schemes increase pensions in payment at CPI, capped at either 2.5% or 5%/yr — check your scheme booklet. The escalation rate is min(DB escalation rate, cap) applied each year. If your scheme uses RPI, set the rate to ~0.5–1% above your CPI assumption.
Tax-free withdrawals — excluded from taxable income calculations entirely.
General investment account. Drained by bed-and-ISA transfers each year (set below).
Primary home equity not included in investable pot — only used in the downsizing scenario. BTL equity is included in the pot.
The model calculates remaining balance at remortgage date, then computes new monthly payments at the new rate and term. Home equity = property value minus outstanding balance at each point in time.
Contributions are only applied for the number of years specified, then stop. For example, £42,667/yr pension for 3 years = £128,000 total.
Bed-and-ISA: Sell GIA investments and reinvest into ISA each year. Added to ISA, deducted from GIA — total portfolio unchanged, gains shelter into the tax-free wrapper. Max ISA allowance: £20,000/yr = £1,667/month.
Capped at HMRC £268,275 limit (2024/25). Completely tax-free — excluded from taxable income. Drawn down first before any taxable pension withdrawal.
ISA withdrawals and tax-free lump sum are entirely excluded from taxable income. DB pension, state pension, and pension drawdown are all taxable. Bands are uprated by your inflation assumption each year.
Equity released = home grown to downsizing age minus new property (also grown) minus costs. Injected into ISA balance at that age (tax-free).
Switch to Results after reviewing your details to see your full projection.
Switch to Year-by-year to see the full tax breakdown table.