What is the FAD vs UFPLS vs Annuity Comparison Calculator?
The FAD vs UFPLS vs Annuity Comparison Tool helps you understand how three common UK pension withdrawal methods compare. By modelling your pension pot, tax position and withdrawal choices, it shows how income, tax and remaining pot value differ under each method. This helps you make clearer decisions about how to take money from your defined contribution pension.
How does the Calculator work?
This calculator models your pension pot year by year and compares outcomes under Flexi Access Drawdown, UFPLS and annuity purchase. It applies your inputs on real investment returns, fees, State Pension and other taxable income, then calculates tax and net income using UK or Scottish tax bands. Each strategy starts from the same pension pot so the comparison is fair and consistent.
Step One: Enter your profile and starting pot
Add your current age, the age you want to model until and your starting pension pot.
Choose your expected real investment return, annual fees, State Pension and other income so the tool can calculate tax and growth accurately.
Step Two: Choose FAD, UFPLS and annuity settings
Decide whether to take a tax free lump sum under FAD, select fixed or sustainable withdrawals for both FAD and UFPLS, and choose what percentage of your pot goes into an annuity.
The calculator then applies the correct tax treatment to each method.
Step Three: Compare your results
Review lifetime income, total tax, final pot value and any depletion age for each strategy.
Use the charts and year by year tables to understand how each method behaves over time.
Disclaimer: This calculator provides illustrative projections only and should not be taken as financial advice. Individual circumstances vary, so consider speaking with a qualified financial adviser before making major financial decisions.
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What is the FAD vs UFPLS vs Annuity Comparison Calculator?
This section answers common questions about how the calculator works, what it includes and how to use the results. It is designed to give quick clarity without needing to understand the underlying code or tax rules.
What does this calculator do?
It compares Flexi Access Drawdown, UFPLS and buying an annuity using the same pension pot and tax assumptions. This shows how each method affects income, tax and remaining capital over time.
How does it work?
The model runs year by year, applying real growth, fees, tax bands and State Pension based on your inputs. It then calculates taxable income, tax, net income and remaining pot size for each strategy.
What information do I need?
You will need your pension pot value, expected real return, annual fees, State Pension amount, other income and your preferred withdrawal settings for FAD, UFPLS and annuity.
Does the calculator include UK tax rules?
Yes. It uses the correct personal allowance and applies UK or Scottish income tax bands to pension withdrawals, State Pension and other taxable income.
Does it follow UK pension rules?
The model starts pension withdrawals at 57, which is the normal minimum pension age from 6 April 2028. Until then most people can access a private pension from 55, unless a protected pension age or the scheme rules say otherwise. Check the age used in the comparison against your real access date, then rerun if you can take money sooner.
How accurate are the results?
The tool provides a consistent comparison using your assumptions. It cannot predict future investment returns or tax changes, but it accurately applies current rules and modelling logic.
Could taking UFPLS trigger the Money Purchase Annual Allowance?
Usually, yes, because each UFPLS payment normally contains taxable pension income as well as a tax-free element. That can trigger the lower Money Purchase Annual Allowance for future defined contribution saving. Taking pension commencement tax-free cash without taxable flexible income normally does not. If you are still contributing, confirm the exact transaction with the provider before withdrawing.
Why might the first pension payment be taxed too heavily?
Providers often use an emergency or temporary tax code when they do not yet have complete pay and tax information. A large one-off UFPLS or drawdown payment can therefore have more tax deducted than the eventual yearly position requires. The overpayment may be reclaimed or corrected, but the calculator shows the underlying liability rather than guaranteeing the amount that reaches your bank on day one.
Can I combine an annuity with flexi-access drawdown?
Yes. You might use an annuity to cover essential bills and leave the rest in drawdown for travel, gifts and one-off costs. That can reduce the risk of outliving core income without giving up all flexibility. Model the split rather than forcing the whole pension into one route.
What happens to each option when I die?
Drawdown funds and remaining pension wealth can usually pass to nominated beneficiaries under pension tax rules. An annuity may stop unless you selected a joint-life pension, guarantee period or value protection. Those features normally reduce the starting income. Compare the income you receive and the protection left behind, not income alone.
Is my information stored?
No. All calculations run locally in your browser and are not saved or transmitted.
Is this financial advice?
No. It is an educational and planning tool only.
Trust and education
Certified Money First Aider®
These calculators are built by a Certified Money First Aider to help you think more clearly about money and time. Money First Aid® is about practical, non-judgemental support for financial wellbeing. The calculators can certainly help you make informed decisions, but they are not regulated financial advice.
Behind Retirement Calculators
Built from the questions I was asking myself
I'm Ryan, the person behind Retirement Calculators. I started the site after selling an online business and trying to understand what our pensions, ISAs, investments and property actually meant for the way we wanted to live.
The calculators are built around those real decisions: whether you could work less, retire earlier, spend more now or use your money differently. They will not give you a perfect answer, but they can make the trade-offs much easier to see.
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