Actually the more general case would be to allow each year to specify the percentage of taxable and non taxable pension income as an advanced tweak. UFPLS and all tax free first are just two special cases. “Flexi access drawdown” allows a lot of flexibility between these two options

It would be cool to be able to compare different drawdown strategies and the tax implications of each on any one year.

The mentioned £268275 total tax free cash applies to the 25% tax free lump sums from all DC pensions AND any optional tax free lump sum you might take from a DB pension even though if you tool the DB pension as income only NONE of it would be tax free.

The £268,275 will apply from April 2024 when the lifetime allowance is also abolished.

The setting in Projection Lab doesn’t appear to lock the amount of tax free cash at the crystalisation point (if less than £268275) and it would be good to have the setting (once that amount kicks in next year)

You can take £16760 a year tax free. 25% (4190) tax free leaving £12570 which is exactly the income tax threshold so you won’t pay any. Would be great to model this in PL somehow.

Would get great to have this feature added.

This would be a very useful feature indeed and help to make the tax planning capability meaningful.

I would really love to see this feature. I have a SIPP and an employer DC pension and would like to customize withdrawals to maximize tax-free cash and uncrystallized funds.

For info: this YouTube video explains why it can be advantageous not to take all the tax free cash at the beginning from a taxation point of view:

https://www.youtube.com/watch?v=jiW4i5ErLOc&t=66s

The other advantage is that the “un-crystalised” portion of the pension continues grows further, so the portion taken 25% tax free later can be a greater amount than it would have been if all taken at the start.

Would be great to have this feature - As the video shows, accessing pensions like this can make a really significant difference.

I think it would be necessary to implement “crystalisation” - so effectively splitting the DC pension into 2 accounts at retirement - a crystalised and un-crystalised part, which cash moving into the cystalised part when the tax free 25% portion is drawn down. As above it would be necessary to keep track of the total amount withdrawn tax free to cap it at the £268,275 limit.

Thank you Simon! I saw that video and have come to ProjectionLab looking to model exactly that. This functionality would turn this software viral in the UK (haven’t found anywhere else yet doing it).

This is really needed for folks in the UK!!