PENSION POT SCENARIO
£75,000 pension pot
25% tax-free cash estimate£18,750
5% annual illustration£3,750
5% monthly illustration£313
Income-rate and fee scenarios
- 3% a year
- £2,250
- 4% a year
- £3,000
- 5% a year
- £3,750
- 6% a year
- £4,500
- 1% annual fee illustration
- £750
Planning with this pot size
A £75,000 pension is a smaller pot where charges and State Pension context can be especially important. Taking the maximum illustrated tax-free cash would leave about £56,250 invested. A 4% withdrawal from the original pot is £3,000 a year before Income Tax, investment movement and provider charges.
Withdrawals are not guaranteed to last. Sequence risk, inflation, investment returns, lifespan, State Pension entitlement and other income all matter. An annuity exchanges capital for guaranteed income, while drawdown keeps investments exposed to markets.
Read independent pension guidance from MoneyHelper. Consider regulated advice before an irreversible transfer or withdrawal.