Pension Drawdown Calculator
Project how long your pension pot will last — or whether it will sustain your withdrawals indefinitely.
Pot lasts
42 years
- Balance at age 70
- £175,987.79
- Balance at age 75
- £159,952.82
- Balance at age 80
- £140,443.84
- Balance at age 85
- £116,708.18
- Balance at age 90
- £87,830.12
Projection only — assumes constant growth rate and withdrawals. Actual investment returns vary. Seek regulated financial advice before making drawdown decisions.
How to use this calculator
Enter your current pension pot value, the amount you plan to withdraw each year, your expected annual investment growth rate, and your current age. The calculator projects your pot balance year by year and shows how long it will last.
How the calculation works
Each year, your pot grows by the annual growth rate and then the withdrawal is subtracted. If the pot reaches zero it is depleted; if growth consistently exceeds withdrawals, the pot is sustainable indefinitely. The formula used is: balance(n) = balance(n−1) × (1 + r) − withdrawal, where r is the annual growth rate as a decimal.
Worked example
A £200,000 pot with £10,000 annual withdrawals and 4% growth: Year 1 balance = £200,000 × 1.04 − £10,000 = £198,000. Year 2 = £198,000 × 1.04 − £10,000 = £195,920. At these rates the pot lasts over 40 years. Increase withdrawals to £15,000 and the pot depletes after around 22 years.
Frequently asked questions
What is pension drawdown?
Pension drawdown (also called income drawdown or flexi-access drawdown) lets you keep your pension pot invested and take withdrawals as needed, rather than buying an annuity. Your money stays in the market and can grow, but your income is not guaranteed.
What growth rate should I use?
A commonly used planning figure is 4–6% per year for a balanced investment portfolio, before charges. Subtract your fund's annual management charge (typically 0.15–0.75%) to get a net figure. Conservative planning uses 3–4%; optimistic planning uses 6–7%. Always run your numbers at multiple rates.
Does this account for inflation?
No — the calculator uses nominal (before inflation) figures. To account for inflation, reduce your growth rate by the expected inflation rate (e.g. use 2% growth if you expect 4% returns and 2% inflation), or increase your annual withdrawal by inflation each year.
What is the 4% rule?
The 4% rule is a retirement planning guideline suggesting you can withdraw 4% of your initial pot each year with a high probability of the pot lasting 30 years, based on historical US market returns. It is a starting point only — your actual sustainable withdrawal rate depends on your asset allocation, charges, and retirement length.
Is this financial advice?
No. This calculator is a projection tool for educational purposes only. It does not account for tax, charges, means-tested benefits, or changes in your personal circumstances. You should seek independent regulated financial advice before making drawdown decisions.
Can I take a tax-free lump sum in drawdown?
Yes — up to 25% of your pension pot (subject to your lifetime allowance) can be taken as a tax-free lump sum. The remaining 75% is taxable when withdrawn. Taking the lump sum reduces your pot for the purposes of this projection.