SIPP Planner

Tax relief (relief at source): You pay the net amount into your SIPP. HMRC automatically adds 20% basic rate relief, grossing it up. If you pay 40% or 45% income tax, you can claim the additional relief via Self Assessment — this comes back to you as a cash refund, not into the pension pot.

Monte Carlo simulation: 1,000 independent paths are simulated. Each monthly step applies a log-normally distributed return drawn from the selected annual mean and volatility. Your gross monthly contribution is added each step. Results show the spread of outcomes — not a forecast.

Drawdown — PCLS vs UFPLS: PCLS (Pension Commencement Lump Sum) — you take up to 25% of your pot as a one-off tax-free sum (capped at £268,275), then draw down the remainder as taxable income. UFPLS (Uncrystallised Fund Pension Lump Sum) — each withdrawal is 25% tax-free and 75% taxable, spreading the tax-free entitlement across your lifetime.

Growth assumptions: Conservative 4% p.a. / 10% vol · Balanced 6.5% p.a. / 12% vol · Aggressive 9% p.a. / 16% vol. All figures are nominal. Inflation, provider charges, and investment costs are not modelled. The 4% sustainable withdrawal rate is a commonly used rule of thumb and is not guaranteed.