Pension Drawdown Calculator — Plan Your Retirement Income
Calculate sustainable income from pension drawdown in the UK. Find out how long your pension pot will last at different withdrawal rates and compare with annuities in 2026.
Since pension freedoms were introduced in 2015 most UK retirees now choose flexible drawdown over buying an annuity. Drawdown lets you keep your pension invested while withdrawing income as needed. The challenge is balancing withdrawing enough to enjoy retirement while not running out of money. Withdrawing too much too early especially during market downturns can deplete your pot decades before you expected. Our calculator models different withdrawal rates and investment returns to show how long your pension will last.
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Key Information
| Parameter | Details |
|---|---|
| Tax-Free Lump Sum | 25% of pension pot |
| Sustainable Withdrawal Rate | 3.5% - 4% per year |
| Average UK Pension Pot at 65 | £100000 - £150000 |
| State Pension (Full 2026) | £221.20 per week |
Calculate your drawdown income
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Use Calculator NowFrequently Asked Questions
How much can I safely withdraw from my pension?
The widely cited 4% rule suggests withdrawing 4% of your pension pot in year one then adjusting for inflation each year. On a £200000 pot that means £8000 in the first year or £667 per month. Research suggests this has a high probability of lasting 30 years. However in the UK with lower expected returns many advisors recommend 3.5% as a safer withdrawal rate especially if retiring before 60.
Should I take the 25% tax-free lump sum?
You can take 25% of your pension tax-free and this is one of the most generous tax breaks available. On a £200000 pot that is £50000 tax-free. However taking the full lump sum at once might not be optimal. Some people phase their tax-free withdrawal over several years by crystallizing portions of their pension each year. Consider your actual cash needs and tax position before deciding.
Is drawdown or annuity better?
Drawdown offers flexibility and potential for higher income if investments perform well but carries the risk of running out of money. Annuities guarantee income for life but are inflexible and current rates mean lower initial income. Many retirees use a combination buying an annuity to cover essential expenses and keeping the rest in drawdown for flexibility. The right mix depends on your health risk tolerance and other income sources.
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Last updated: 24 March 2026