About the UK Pension Drawdown Calculator
This UK pension drawdown calculator projects how long a flexi-access drawdown pot will last when you take a regular income from it. Enter your pot, whether you take the 25% tax-free lump sum first, the yearly income you want, how fast you will increase it, and your expected investment growth and charges. It shows the age your pot runs out, a year-by-year balance, the Income Tax on your first year’s withdrawals and the highest sustainable income that lasts to a target age.
Drawdown keeps your pension invested, so the result depends on returns you cannot know in advance. Use cautious growth assumptions (after inflation if you want results in today’s money), include platform and fund charges, and test a few scenarios. A withdrawal increase lets income keep pace with prices; leaving it at 0% means income falls in real terms over time.
Withdrawals from drawdown are taxed as pension income, so the calculator adds them to any State Pension or other income to estimate 2026/27 Income Tax for England, Wales and Northern Ireland or Scotland. It assumes a steady return each year — real markets are volatile, and poor returns early in retirement can shorten how long a pot lasts.
With the default inputs, the your pot lasts is 17.1 years. Change any value above to recalculate instantly.
How to use the uk pension drawdown calculator
- 1Enter your pension pot and choose whether to take 25% tax-free cash first.
- 2Enter your starting age and the yearly income you want before tax.
- 3Set how much income should rise each year, plus growth and charges.
- 4Add your State Pension and other income to estimate the tax on withdrawals.
- 5Check the age the pot runs out and the sustainable income for your target age.
Formula and method
The projection runs year by year. At the start of each year the income for that year (W) is taken from the pot, then what is left grows at the expected return (g) and the annual charge (c) is deducted. Income rises by the chosen increase (i) every year. The pot lasts until a year’s income can no longer be paid in full; the final partial year is counted as a fraction.
The tax-free lump sum, if taken, is 25% of the pot capped at the £268,275 lump sum allowance. The sustainable income is found by searching for the starting withdrawal that leaves exactly nothing at your target age with the same increases, growth and charges. First-year tax adds the withdrawal to your other income and applies 2026/27 Income Tax bands.
- B
- Drawdown pot balance
- W
- Yearly income withdrawn
- g
- Expected annual investment growth
- c
- Annual charges as a percentage of the pot
- i
- Yearly increase in income
Worked examples
£300,000 pot, £15,000 a year rising 2.5%
Taking £75,000 tax-free leaves £225,000. Drawing £15,000 rising 2.5% a year with 5% growth and 0.75% charges runs out after about 17 years, around age 83. On top of £12,000 other income, £14,430 of the first £15,000 is taxed at 20%, costing £2,886. Starting at about £9,691 instead would last to 95.
Level £10,000 a year, no tax-free cash taken
A level £10,000 is 5% of £200,000. With net growth of about 3.48% after charges the pot lasts about 32.6 years, to age 92, and you could start at about £10,482 and still reach 90. With no other income the whole £10,000 falls inside the Personal Allowance, so no tax is due.
Higher income from a smaller pot
After £37,500 of tax-free cash, £112,500 supports £12,000 rising 3% a year for only about 9.4 years with modest growth and 1% charges; lasting to 90 would mean starting at about £4,667. With the Personal Allowance already used by other income, the whole first-year withdrawal is taxed at 20%: £2,400.
Frequently asked questions
How long will my pension pot last in drawdown?+
It depends on how much you withdraw, investment growth, charges and whether you increase income each year. As a rough guide, the US research behind the “4% rule” found inflation-linked withdrawals starting at 4% lasted at least 30 years in historical markets, and UK-based studies point to a lower rate — there is no guarantee, so model several growth rates.
How is pension drawdown taxed?+
After any tax-free cash, every withdrawal is taxed as pension income at your marginal Income Tax rate, together with your State Pension and other income. Providers deduct tax through PAYE and may use an emergency code on the first payment.
What is a safe withdrawal rate for UK drawdown?+
Studies using UK market history suggest a starting rate of around 3%–3.5% for a 30-year retirement with inflation-linked increases is cautious. Higher rates can work for shorter retirements or if you are willing to cut income after poor years.
Does taking drawdown affect how much I can pay into a pension?+
Taking only tax-free cash does not. Once you take taxable income from flexi-access drawdown, the money purchase annual allowance applies and future contributions to defined contribution pensions are limited to £10,000 a year.
What happens to my drawdown pot when I die?+
Remaining funds can pass to beneficiaries. If you die before 75 they are usually paid tax-free; from 75 they are taxed as the beneficiary’s income. Most unused pension funds and death benefits are due to come into Inheritance Tax from 6 April 2027.
Should I buy an annuity instead of drawdown?+
An annuity guarantees income for life and removes investment risk; drawdown keeps flexibility and potential growth but can run out. Many retirees combine the two — for example using drawdown early and buying an annuity later, when rates are higher.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.