Your retirement budget

Welcome to our unique, new retirement budget planner. This will help you budget more effectively in retirement. It's designed to be easy and quick to complete.

Step 1. Identify your sources of income in retirement

You may not know exactly what your total income may be in retirement, but don't worry. We'll help you identify the right figures or point you in the right direction.


In estimating your retirement income, if you're not clear about a box, just hover over the title and a help box will appear with more information. For example, you may not be aware of your basic State Pension. If so, the help box will show you the maximum benefit payable, where to find out how the benefit is calculated and explain how to apply for an accurate forecast. It couldn't be simpler.


Before you start, just let us know how old you will be when you retire. This will help us estimate the amount of tax you are likely to pay on your income.




Income from renting property is taxed as earned income. Effectively the rental income you receive less your expenses is the profit on which you are taxed.


Please enter the gross amount and we’ll calculate the tax at the end

It is difficult to say how much income you can take from other savings and investments:

This would also include a Self Invested Personal Pension (SIPP). These are ‘money purchase’ plans. This means you build up a fund that you have to turn into an income at retirement.


You should receive and annual statement of how much your fund is worth and how much income it could provide.

‘Money purchase’ pension plans (sometimes called ‘defined contribution’ plans) build up a pot of money that can be turned into an income at retirement.


You should receive an annual statement of how much your fund is worth and an estimate of how much income you could receive.

‘Final salary’ pension plans (sometimes called ‘defined benefit' plans) usually pay a proportion of your salary for each year of service.


You should receive a statement each year that will show the estimated pension you will receive.

Commonly, these will be benefits received as a result of ill health or disability. If these apply to you enter the amount.


For further information, click on the section ‘Other sources of income’.

This is a means tested benefit that is only payable to people on very low incomes.


If you think this might apply to you, go to ‘Pension Credit’ at the end of the section on ‘State Pensions’ to find out more.

The maximum State Pension is £155.65 (2016-17). You should receive this if you have paid National Insurance contributions, or received National Insurance credits, for 35 years. If not, the amount you receive will be proportionate.

However, there are circumstances where you may receive more than this amount and situations where you receive less than this.

If you’re planning to continue to work after retirement, simply enter the gross salary you will be paid (we’ll calculate the tax automatically)