Inheriting a £1,000,000 pension — compare the income-tax assumptions.

For £1,000,000, applying a flat 20% income-tax assumption to the taxable drawdown scenario gives £200,000 tax and £800,000 after income tax. That is arithmetic, not a prediction of the beneficiary’s liability: actual withdrawals can cross bands and affect allowances. The before-75 illustration assumes all tax-free drawdown conditions are met. Lump sums need a separate allowance and timing check. IHT is excluded, including the reform for deaths from 6 April 2027. Pot size alone cannot establish either tax liability or an appropriate withdrawal strategy.