Rates & method
Figures for the 2026/27 tax year
Oakspan is built on published UK rates for England, Wales and Northern Ireland. Change growth, inflation and annuity rates on the calculator; the statutory figures below stay fixed until the next tax year.
| Tax year | 2026/27 |
|---|---|
| Full new State Pension | £241.30 a week (£12,547.60 a year) |
| Personal allowance | £12,570 |
| Basic-rate band ends | £50,270 |
| Additional-rate threshold | £125,140 |
| Annual allowance | £60,000 |
| Money purchase annual allowance | £10,000 |
| Lump sum allowance | £268,275 |
| Tax-free cash | 25% of the crystallised pot, within the LSA |
How the projection is built
Saving years run from your current age up to, but not including, retirement age. Each year the pot is credited with your personal and employer contributions (grown by the contribution-growth rate) and with investment growth. Contributions are assumed to arrive through the year, so they earn half a year’s growth.
At retirement the model can take 25% tax-free cash, capped at the lump sum allowance. Remaining funds stay invested. Desired income is entered in today’s pounds and inflated each year. If you say that income includes the State Pension, private withdrawals fall once the State Pension is in payment.
Income tax is estimated on taxable drawdown plus the State Pension plus any other taxable income you enter. Personal allowance taper above £100,000 is included. Scottish income tax, National Insurance, pension charges, means-tested benefits and the marriage allowance are not.
Default growth presets
- Cautious — 3% while saving, 2% in retirement, 2.5% inflation.
- Central — 5% / 4% / 2.5%. A plain long-run mix after charges; not a forecast.
- Optimistic — 7% / 5.5% / 2.5%.
Real (today’s money) results deflate the pot by cumulative inflation. Nominal results show cash pounds in each future year. Sustainable income is found by searching for the highest inflation-linked withdrawal that does not exhaust the pot before your target age.
Annuity rates
The comparison uses the rates you type, defaulting to 6.2% level and 3.8% inflation-linked on the invested pot after any lump sum. Those are illustrations, not a live quote. Health, spouse’s pensions and guarantee periods change the price. Always compare an actual Open Market Option quote.
Sources
State Pension rates: GOV.UK new State Pension. Tax bands and personal allowance: HMRC / 2026/27 tax tables. Annual and lump sum allowances: MoneyHelper and parliamentary briefing. Oakspan does not scrape your pension provider; every number on the calculator is one you entered.