Draw Down Calculations...

DE_612183

Can someone check my logic?

Assuming that I already have some income that takes up my Tax Allowance.

If I take £5k ( 25% is tax free - £1250, the balance then is subject to 20% tax, so the £3750 gets reduced to £3000 ), then I actually get £4250 - and if I split this over 12 months that is £354.16.

So the multiplying factor to determine how much I need to draw based on my monthly requirement is:

Monthly Requirement * 14.11765 

I understand that if my overall income goes above about 50k then it gets more complicated but I'm only looking for a small amount.

QrizB

Yes, that's probably close enough.

The factor is 12/0.85, or (if you'd prefer whole numbers) 240/17.

Which is the same as 14.11765, if you round to to five decimal places.