Introduction
A pension drawdown lets you take money from your pension pot while the rest stays invested. Unlike an annuity, you choose how much to withdraw and when. This gives you more control, but it also means your money could run out if you take too much too fast.
This pension drawdown calculator helps you see how long your pension pot might last in retirement. Enter your age, pension savings, and the income you want each month. The tool then projects your fund value under three growth scenarios (low, mid, and high) so you can plan with more confidence.
You can also adjust the tax-free lump sum you take at retirement, set your own inflation and growth rates, and compare drawdown income to an illustrative annuity. The results include a year-by-year breakdown, a clear chart, and a step-by-step explanation of every calculation.
How to Use Our Pension Drawdown Calculator
Enter a few details about your age, pension savings, and retirement plans. The calculator will show you how long your pension pot could last, the most income you can safely take each month, and whether you are on track to meet your goals.
Date of birth: Enter the date you were born. This tells the calculator your current age and how many years you have until retirement.
Gender: Pick your gender. This is only used to set a starting life expectancy based on UK national data. You can change the life expectancy number later if you want.
Current pension fund value: Type in the total amount you have saved in your pension today.
Monthly contribution: Enter how much money you pay into your pension each month before you retire.
Planned retirement age: Choose the age you want to stop working and start taking money from your pension.
Required gross monthly income: Enter how much money you want to take from your pension each month in retirement, before tax.
Tax-free lump sum (PCLS): Use the slider to choose what percentage of your pension pot you want to take as a tax-free cash lump sum at retirement. You can usually take up to 25%, up to a maximum of £268,275.1
Investment approach: Pick Cautious, Moderate, or Adventurous. This sets how fast your investments are expected to grow each year. A higher growth rate means more risk.
Central growth rate: Use the slider to fine-tune the yearly growth rate of your investments if you want a custom value.
Annual fund charge: Set the yearly fee your pension provider takes from your fund. This is subtracted from the growth rate.
Inflation rate: Set how much prices are expected to rise each year. Your income withdrawals will go up by this amount each year to keep up with the cost of living.
Life expectancy: Enter the age you expect to live to. The calculator uses UK data to set a default, but you can type in any age you like.
Once you have filled in your details, press the Calculate button to see your results, including a chart of your fund over time, a comparison with annuity income, and a step-by-step breakdown of the maths.
What Is Pension Drawdown?
Pension drawdown is a way to take money from your pension pot after you retire. Instead of buying a fixed income for life (called an annuity), you keep your money invested and pull out what you need each month or year. Your pot can keep growing through compound interest while you spend from it, but it can also shrink or run out if you take too much or if investments perform poorly.
How Does This Pension Drawdown Calculator Work?
This calculator shows how long your pension pot could last based on your age, savings, monthly contributions, and the income you want in retirement. It builds three scenarios for low, mid, and high investment growth, so you can see a range of possible outcomes. It also factors in inflation, fund charges, and your tax-free lump sum (called PCLS), which usually lets you take up to 25% of your pot tax-free when you retire.1
Key Things to Know About Pension Drawdown
You can usually start drawdown from age 55, rising to 57 from 6 April 2028.3 There is no set amount you must take each year, which gives you flexibility. However, taking too much too early is the biggest risk. If your withdrawals and poor market returns drain your pot, you could be left with no private pension income later in life.
Your withdrawals above the tax-free portion count as taxable income, and you pay tax if your total income is more than your Personal Allowance.2 This calculator shows gross (before tax) figures, so your take-home pay will be lower. The State Pension is not included in these projections either. It would be paid on top of any drawdown income you receive.
The growth rates, inflation, and charges used here are assumptions, not guarantees. Real investment returns change every year. You should review your drawdown plan regularly and consider speaking to a qualified financial adviser before making decisions about your retirement savings.