Pension projection assumptions

  • These figures are only illustrative: These figures are not guaranteed and none of the information provided constitutes financial or other professional advice from Standard Life
  • Inflation: The calculator takes inflation into account to show how much your pension might be worth in today’s money. We’ve assumed a 2% rate of inflation in our calculation.
  • Charges: We’ve assumed a 0.55% charge, but the actual charges you pay may be higher or lower based on the investment options you choose and how much you invest.
  • Monthly contributions: We’ve assumed your monthly contributions will increase by 3.5% each year and will stop at your retirement age.
  • Investment growth: We’ve assumed an annual investment growth rate of either 2%, 5% or 8% each year. Please remember this is just an assumption and investment growth isn’t guaranteed – investments can go down as well as up so you could get back less than you paid in.
  • Tax free cash: The amount of tax free cash that can be taken is usually 25% of your pension value. This is limited to the “Lump Sum Allowance” which is currently £286,275.
  • Tax relief:  We assume your monthly contributions already include tax relief. Your own personal circumstances will have an impact on the tax you pay. Our calculator takes the standard Annual Allowance into account. For more information about tax relief, limits and your pension see our guide

Flexible income assumptions

  • These figures are only illustrative: These figures are not guaranteed. None of the information provided constitutes financial or other professional advice from Standard Life.
  • Tax free cash: We're assuming you will take your 25% tax free cash as a lump sum. There are other options for how you take your tax free lump sum which could suit your needs better.
  • Investment growth: We’ve assumed an annual investment growth rate of either 2%, 5% or 8% each year. Please remember this is just an assumption and investment growth isn’t guaranteed – investments can go down as well as up so you could get back less than you paid in.
  • Income inflation: The drawdown income calculations assume you take a fixed income each year and do not allow for future income increases to keep pace with inflation.
  • Tax: This illustration shows the annual gross income that may be payable on retirement. It will be subject to income tax.
  • The state pension: We have assumed you will be entitled to the full Single-Tier State Pension, which may require you to have 35 qualifying years of national insurance contributions. Please visit GOV.co.uk for more information.
  • You need to make sure your money lasts: How much money you take, when you take it and how your investments perform will affect how long your pension pot will last. You need to manage your withdrawals and investments to make sure your pot lasts as long as you need it to.

Guaranteed income assumptions

  • These figures are only illustrative: These figures are not guaranteed. None of the information provided constitutes financial or other professional advice from Standard Life.
  • Tax free cash: We're assuming you will take 25% of your pot as tax free cash. You could increase your annuity income by taking less tax-free cash. 25% is normally the most you can take tax free, up to the lump sum allowance of £268,275.
  • Inflation: This illustration shows, in today's prices, the annuity that might be payable on retirement.
  • Tax: This illustration shows the annual gross pension income that may be payable on retirement. It will be subject to income tax.
  • The state pension: We have assumed you will be entitled to the full Single-Tier State Pension, which may require you to have 35 qualifying years of national insurance contributions. Please visit GOV.co.uk for more information.
  • Start date: The first pension payment will be paid on your birthday during the year of retirement and every month from this date.
  • Guarantee period: If you die within five years of the start date, we'll pay the annuity to your beneficiary until the end of the 5 year period
  • Inheritance: Your annuity will not be paid to any dependent after your death, outside of the guarantee period.
  • Payments: Your annuity payments are fixed and won’t rise with inflation.
  • Annuity rates: The rates we've used are for a Standard Life annuity and are based on current financial conditions, not at your projected retirement age. The rates were last updated on 09/10/2025
  • Important Considerations: This annuity is based on someone in good health. Other types of annuities are available which may suit your needs better.

Fix and flex assumptions

  • These figures are only illustrative: These figures are not guaranteed. None of the information provided constitutes financial or other professional advice from Standard Life.
  • Tax free cash: We're assuming you will take your 25% tax free cash as a lump sum. There are other options for how you take your tax free lump sum which could suit your needs better.
  • Inflation: This illustration shows, in today's prices, the pension that might be payable on retirement, however your pension income won’t increase with inflation.
  • The state pension: We have assumed you will be entitled to the full Single-Tier State Pension, which may require you to have 35 qualifying years of national insurance contributions. Please visit GOV.co.uk for more information.
  • Tax: Income figures are before tax.
  • Type of annuity: This annuity is paid monthly, in advance and is based on someone in good health living in an average postcode - this means we've used a typical UK location rather than adjusting for regional life expectancy differences. Annuity payments are guaranteed for 5 years, won’t increase with inflation and will not be paid to any dependant after your death (outside of the guarantee period). Other types of annuities are available which may suit your needs better.
  • You need to make sure your money lasts: How much money you take, when you take it and how your investments perform will affect how long your pension pot will last. You need to manage your withdrawals and investments to make sure your pot lasts as long as you need it to.

Taking your pension in one go - assumptions

  • These figures are only illustrative: These figures are not guaranteed. None of the information provided constitutes financial or other professional advice from Standard Life.
  • Tax free cash: We're assuming you will take 25% of your pension pot as tax free cash, before the income tax calculations are applied. 
  • Tax position: This calculator does not provide you with your final tax year-end position and we would recommend that you speak to a financial adviser or check your tax information with HM Revenue and Customs (HMRC).
  • Emergency tax: This calculator assumes that the tax payable on the remaining pension fund uses emergency tax rate. The tax you pay will depend on your inidvidual circumstances and you may be able to reclaim overpaid tax from HMRC.