Retirement Planning Calculator

wary

Please can someone recommend an online retirement planning calculator?

I’ve prepared a spreadsheet of likely outgoings although inflation has to be taken into account. I’ve also performed some projections based on our current SIPP valuations & savings, but it gets complicated when one has to phase in state pensions, S32 income, possible inheritance … some of which will be subject to PAYE. This would be for a married couple, which adds an additional complication as we want to make full use of our tax-free threshold each year whilst keeping outside of the upper tax bracket, and the vast majority of our retirement income is in my name (plus there’s a 7-year age difference). (I believe the marriage allowance means my wife can transfer 10% of her annual personal tax allowance to me.)

I guess I’m after something that would assume that we would withdraw our SIPP income year-on-year in the most tax-efficient manner, and not only tell me how much disposable income we could have for a given life-expectancy, but also for how long an assumed annual expenditure (plus inflation) could be realistically sustained.

Apologies if this has been asked many times before, and I have searched online. But as you'll see, I'm after something fairly sophisticated rather than a basic calculator (which I'm largely capable of doing myself in an XLS).

Thanks.

MarkCarnage

I'm not sure that any of the off the shelf models would cope with all the vagaries you outline above.

If you are ok with Excel why not design it yourself based on your chosen sustainable withdrawal principles. There are lots of links in other recent threads on here to these.

I run my own spreadsheet along these lines.

cfw1994

Hi wary,
I've dropped you a message with a link to a sample spreadsheet layout I use: let me know if it helps at all!
cheers

cloud_dog

wary wrote: »

Apologies if this has been asked many times before, and I have searched online. But as you'll see, I'm after something fairly sophisticated rather than a basic calculator (which I'm largely capable of doing myself in an XLS).

Wouldn't cFireSim provide a good insight in to answering the question(s)?

[Deleted User]

cloud_dog wrote: »

Wouldn't cFireSim provide a good insight in to answering the question(s)?

It would do everything apart from the tax planning

cobson

Some people like retireeasy.co.uk, but I don't know if it handles taxes.

EDIT: their how it works page says that it calculates taxes.

cfw1994

cloud_dog wrote: »

Wouldn't cFireSim provide a good insight in to answering the question(s)?

Yes indeed, good reminder!!
Last time I tried, it didn't play properly: appears to work again now (not sure why I had trouble - I think perhaps I was trying to login/register but that doesn't appear to work?)

I like the spreadsheet approach alongside cFireSim
I can update the spreadsheet every year (or month/week/day if I wanted!) to accurately reflect the current situation, and use cFireSim to see give a sanity check on how things are going :T

cfw1994

Deleted_User wrote: »

It would do everything apart from the tax planning

Good point....

I am, however, perhaps too lazy regarding tax: my view is that I will inevitably pay basic rate tax in some form - I am much too close to 'decumulating' to stuff money into ISAs to avoid it.

I therefore work my numbers based on a desired pre-tax amount.

In reality, we do have some monies outside pensions that can be accessed with little-to-no tax, so that I will view as a bonus.

To some degree, I figure I were too angsty about avoiding as much tax as possible, I suspect I am not ready to give up the day job!

(Edit to add - for example - use https://www.thesalarycalculator.co.uk/lifestyle.php to figure out that if you want to receive £2,500 pcm, you need £34,375.
Remember to tick the "do not pay NI" in Additional Options, otherwise you need almost £39k !!

cobson

If you like cFireSim you may want to look at this tool: https://www.flexibleretirementplanner.com

If you use the downloadable version it means that you can save your data, create different scenarios etc. It is American, but you can just ignore the US tax side of it. Unlike cFireSim it has user-selected average returns and volatility instead of historical returns. Sensitivity Analysis lets you see a heatmap view over a range of values, e.g. returns v withdrawals.

wary

Thanks all for the suggestions. There's a few bits for me to delve into there, and even if I end up simply refining my own spreadsheet to make it more sophisticated, it should at least give me some useful pointers as to what to include & how. Cheers.

Shandi1

re spreadsheets can anyone point me to a spreadsheet which does in year Tax calculation... so I can see before the year end how tax efficient it is to put money into a Pension or the effect of paying dividend etc as these all need to be done before year end...... so basically replicates a self assessment return