SIPP Projection Tool

By Alex • Published: 13 June 2025 • Updated: 23 December 2025

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What this could mean

Under current UK rules, you can usually take up to 25% of your pension as a tax-free lump sum (subject to the Lump Sum Allowance), with the remainder typically taxed as income when withdrawn. This page is a projection tool, not a withdrawal planner.

If you’re planning drawdown, annuities, or want to understand tax implications in detail, use official guidance and/or a regulated financial adviser. Pension Wise (MoneyHelper) is the UK’s free, government-backed guidance route.

SIPP basics: rules, risk, and the “yes — but also no”

A SIPP is a type of personal pension where you choose (or delegate) how the money is invested. That can be powerful: you can access a broad range of funds, shares, bonds, and other assets depending on the provider. The trade-off is that SIPPs reward planning and discipline — and they also punish overconfidence.

• Yes: long time horizons + consistent contributions can make compounding do the heavy lifting.
• But also no: markets don’t deliver smooth returns, and legislation/tax rules can change.
• Yes: tax relief can materially boost contributions.
• But also no: withdrawal tax, allowances, charges and real-life interruptions can change outcomes.

If a SIPP feels like “too much steering wheel”, there are alternatives that can still be excellent: Stocks & Shares ISAs (tax-sheltered investing, different rules to pensions), Cash ISAs (lower risk, lower expected return), workplace pensions (often with employer contributions), and “set-and-forget” managed funds inside pensions/ISAs depending on provider options. Many people also factor in the State Pension as part of the baseline plan.

Where to get guidance or professional advice

• Pension Wise (MoneyHelper): free, impartial guidance appointments (not regulated advice).
• GOV.UK / MoneyHelper: official explainers and next steps if you need help with a personal pension.
• FCA Register: verify whether a firm/individual is authorised before paying for advice.

Why this tool is different

• Uses DOB to remove age-rounding errors.
• Separates SIPP access age from State Pension age (they are not the same).
• Models net vs gross contributions (basic-rate relief at source for “net”).
• Uses low / mid / high outcomes instead of false precision.
• Outputs a complete audit trail: all inputs, derived values, formulae, and a month-by-month schedule.

Choosing a SIPP provider (briefly)

Provider choice is a “fees + features + usability” decision. Costs can include platform fees, fund OCFs, dealing charges, and FX fees. This tool does not model charges — so when you compare providers, treat this projection as an optimistic baseline unless you adjust the return downwards to reflect costs.

If you want a mainstream starting point to research, Hargreaves Lansdown (HL) is often shortlisted because it’s widely used and publishes clear fee information — but “best” depends on what you buy, how often you trade, and how much support you want. Compare against other providers for your situation.

Limitations & disclaimer

This tool is for educational purposes only. It does not model platform charges, fund fees, trading costs, inflation, behavioural changes (e.g., stopping contributions), career breaks, health, or future tax and pension law changes. It assumes a constant monthly contribution and a constant return rate, compounded monthly.

It also does not model “protected pension ages” (scheme-specific rights), ill-health access, annual allowance tapering, or claiming higher/additional-rate relief from HMRC. UK minimum access age rules can change (for example, the minimum pension age is legislated to rise to 57 from April 2028).

This is not regulated financial advice. If you are unsure, consider speaking to a regulated financial adviser or using official guidance services such as Pension Wise.

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