Your retirement strategy has four phases: accumulating (pension contributions + tax relief), consolidating (5–10 years pre-retirement), drawing income (drawdown / annuity / UFPLS), and passing wealth (post-2027 IHT planning). The right tool depends on which phase you're in and what specific question you're asking. Below: the most common questions, with the page that answers them.
Phase 1 — Accumulating: build the pot
Your goal in this phase is maximising tax-efficient pension contributions and ISA growth. The decisions:
- How much can I contribute? See the annual allowance calculator and the carry-forward guide for using up to three prior years.
- Am I hit by the taper? See the tapered annual allowance deep dive. If adjusted income > £260k, you're affected.
- Should I salary sacrifice? See the salary sacrifice framework and the calculator.
- Pension vs ISA priority? Higher-rate taxpayers: pension first (40% relief vs 0% on ISA). Basic-rate: closer call — see salary sacrifice framework.
- SIPP or workplace pension? Take the employer match first (free money), then SIPP for additional control. See how to open a SIPP.
- How do I claim higher-rate relief? See higher-rate relief claim guide.
Phase 2 — Consolidating: 5–10 years out
Pre-retirement is the sequence-of-returns risk zone. Decisions about asset allocation, pot consolidation, and timing are most important now.
- Is my pot on track? See the pension projection calculator.
- Should I transfer my old pensions to a SIPP? See the pension transfer guide.
- How do the new allowances affect me? See the LSA + LSDBA guide.
- Is my asset allocation right for my age? Equity vs bond split, glide path. See ISA strategy by age for the 50s+ section.
- What if I retire early? See the UK FIRE guide.
Phase 3 — Drawing income: aged 55+
You can access defined-contribution pensions from age 55 (rising to 57 in 2028). Decisions about how to take income are the most consequential of retirement planning.
- Drawdown vs annuity vs UFPLS? See the full comparison guide and the calculator.
- How big is my tax-free lump sum? See the tax-free lump sum calculator — capped at £268,275 under LSA.
- What's my drawdown tax bill? See the drawdown tax calculator.
- Can I keep working and contributing? Yes — but watch the MPAA. If you trigger it (by taking taxable income), your future DC allowance drops to £10k/year forever.
- What about my year-of-retirement tax position? See the year you retire guide.
- How should I sequence withdrawals? Generally: ISA first (tax-free) or pension first (use up basic rate band). See retirement income strategy.
Phase 4 — Passing wealth: estate planning
The 2027 IHT-on-pensions reform changes everything. Pension wealth previously passed tax-free to beneficiaries; from April 2027 it enters the IHT estate.
- How does the 2027 reform affect me? See the 2027 IHT-on-pensions guide.
- What's my IHT exposure? See the IHT calculator and the gift tracker.
- Should I spend the pension first? Often yes, post-2027. The 67% combined tax rate at death makes lifetime drawdown materially more efficient.
- Probate process? See the probate + IHT guide.
- CGT on inherited assets? See the base cost reset guide.
State Pension — separate but central
- What will my State Pension be? Check at gov.uk/check-state-pension. Full new State Pension £241.30/week (2026/27) for 35 qualifying years.
- Should I top up missing NI years? See the Class 3 top-up calculator. Voluntary buy-back deadline for 2006–2018 is April 2027.
- What's the triple lock? See triple lock explainer.
- State Pension forecast? Use the forecast calculator.
Specialist situations
- SIPP commercial property purchase? See the SIPP property guide.
- Self-employed pension contributions? See self-employed pension guide.
- Director-shareholder pension strategy? See director-shareholder guide.
- Pension consolidation across multiple jobs? See pension transfer guide.
When to get qualified advice
Pension drawdown decisions, especially for large pots near £268,275 LSA or with complex protected benefits, are regulated investment advice (Part 4A FCA permission). UK Tax Drag's editorial guidance is educational, not advice. For an actual retirement plan, instruct an FCA-authorised IFA. For the tax-side planning (carry-forward, gifts, IHT structure), an ACCA-qualified accountant or CTA-qualified tax adviser is the right route — see the editorial tax adviser recommendation.
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