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This is a drawdown (decumulation) calculator. It models how a pension pot behaves once you start withdrawing from it in retirement. If you’re still saving toward retirement, try the Pension Calculator instead.

Pension Drawdown Calculator

Work out how long your pension pot could last at a given withdrawal rate, or what income you could draw over a chosen number of years.

£
Enter a pot value greater than £0.
%
Normally up to 25% of your pot, subject to your scheme rules and current HMRC limits. Tax-free cash is also capped at the standard Lump Sum Allowance of £268,275 for 2026/27 – some people may have protected or different entitlements, so check with your pension provider. Enter a percentage between 0 and 25.
%
Enter a rate between 0% and 20%.
£
Enter a withdrawal of £0 or more.
Enter a number of years between 1 and 50.

Keeps the buying power of your withdrawal level over time, rather than a fixed cash amount.

%
Enter a rate between 0% and 10%.

Pot Balance Over Time

Year-by-Year Breakdown

How This Calculator Works: Any tax-free lump sum is taken upfront, capped at the standard Lump Sum Allowance of £268,275 for 2026/27 even if 25% of your pot would be more, and the remaining pot is assumed to stay invested and grow at your chosen rate while you withdraw from it. Growth compounds monthly using the effective rate derived from your annual growth assumption (AER). Figures shown are before personal Income Tax on withdrawals – use the Income Tax Calculator to estimate tax on pension income. This tool does not include the State Pension or any other income. It is for illustration only and is not personalised financial advice – consider speaking to a regulated financial adviser or Pension Wise before making retirement income decisions.

Pension Drawdown Calculator UK

Our Pension Drawdown Calculator helps you explore how a pension pot behaves once you start taking an income from it in retirement. It’s the decumulation counterpart to our Pension Calculator, which focuses on saving toward retirement rather than withdrawing from a pot you’ve already built.

What Is Pension Drawdown?

Pension drawdown (sometimes called flexi-access drawdown) is a way of taking an income from your pension pot while the remainder stays invested, rather than using the whole pot to buy a guaranteed annuity income. It gives you flexibility over how much you withdraw and when, but it also means your pot’s longevity depends on your withdrawal rate and how your investments perform.

How Long Will My Pension Pot Last?

Use “How long will my pot last?” mode when you already know roughly what you’d like to withdraw each month. The calculator takes your tax-free lump sum off the top, then models the remaining pot growing at your chosen rate while your monthly withdrawal comes out, to estimate how many years it’s likely to last – or whether growth is expected to keep pace with withdrawals so the pot is not projected to run out.

What Income Can I Draw?

Use “What income can I draw?” mode when you know how many years you want the pot to last and want to work backwards to a monthly withdrawal figure. This solves for the withdrawal amount that would use up the pot over your chosen timeframe, given your assumed growth rate.

The Tax-Free Lump Sum

Most people can take part of their pension pot as a tax-free lump sum when they start accessing it, normally up to 25%, subject to their scheme rules and current HMRC limits. This is capped by the standard Lump Sum Allowance, which is £268,275 for 2026/27 – so on larger pots, 25% of the pot can be more than the amount that’s actually tax-free. Some people hold protected or different entitlements from previous pension rules, so check your specific position with your pension provider or HMRC guidance. This calculator applies the standard £268,275 cap and takes the lump sum off the top before modelling drawdown on the remainder. It doesn’t model taking lump sums at other points during drawdown, or protected allowances.

Why Growth Rate Matters So Much in Drawdown

Unlike the accumulation phase, where a lower-than-expected return mainly slows down how much you build up, a lower-than-expected return during drawdown can shorten how long your pot lasts considerably, because you’re withdrawing from a shrinking base at the same time as investment performance is uncertain. Small changes to the growth rate assumption can make a meaningful difference to the results – it’s worth trying a few different rates to see the range of outcomes.

Adjusting Withdrawals for Inflation

A fixed cash withdrawal buys less every year that inflation runs above 0%. Ticking “increase withdrawals each year in line with inflation” models a withdrawal that grows annually, so your income keeps a level buying power over time rather than a level cash amount – which typically means the pot depletes faster (or supports a lower starting income) than a fixed-cash approach would.

What This Calculator Doesn’t Include

  • The State Pension. This tool models your pension pot in isolation. Many people’s retirement income also includes the State Pension, which would reduce how much needs to come from pot withdrawals.
  • Personal Income Tax. All figures are gross, before Income Tax on pension withdrawals. Use the Income Tax Calculator alongside this tool to estimate tax on your drawdown income.
  • Investment volatility. The calculator assumes a constant growth rate. Real investment returns vary year to year, which particularly matters during drawdown – a run of poor early returns can affect a pot more than the same average return spread evenly.

Getting Regulated Advice

Pension drawdown decisions are significant and often irreversible. This calculator is for illustration only and does not constitute financial advice. Pension Wise offers free, impartial guidance from the government, and a regulated financial adviser can help with a plan specific to your circumstances.

Frequently Asked Questions

How long will my pension pot last in drawdown?

It depends on your pot size, withdrawal rate, and investment growth. Use “How long will my pot last?” mode with your own figures – as a general principle, the higher your withdrawal relative to your pot and growth rate, the sooner it will deplete.

What is a safe withdrawal rate for pension drawdown?

There’s no single figure that suits everyone – it depends on your pot size, how long you need it to last, your growth assumptions, and whether you have other income like the State Pension. This calculator lets you test different withdrawal rates and time horizons against your own assumptions rather than relying on a generic rule of thumb.

How much of my pension can I take tax-free?

Most people can take up to 25% of their pension pot tax-free when they start accessing it, subject to their scheme rules and current HMRC limits. This is capped by the standard Lump Sum Allowance of £268,275 for 2026/27, so on larger pots the tax-free amount may be less than 25% of the pot. Some older or protected pensions may have different allowances. Check with your pension provider for your specific entitlement.

Does drawdown or an annuity give me more income?

It depends on your circumstances, health, risk appetite and how long you live. An annuity provides a guaranteed income for life but is normally inflexible once purchased. Drawdown offers flexibility and the potential for continued investment growth, but carries the risk of running out if withdrawals are too high or returns are poor. This calculator only models drawdown.

What happens if I withdraw too much from my pension?

If withdrawals consistently exceed what your growth rate can sustain, the pot will deplete over time, potentially before you expect it to, especially if investment returns are lower than assumed in years when you’re also withdrawing. Use “How long will my pot last?” mode to stress-test different withdrawal amounts against your pot size.

Should I adjust my pension withdrawals for inflation?

Whether to do so depends on your priorities. A fixed cash withdrawal is simpler and lasts longer in pot terms, but loses buying power over time. An inflation-adjusted withdrawal maintains buying power but typically depletes the pot faster or requires a lower starting amount. This calculator lets you model either approach.

Does this calculator include the State Pension?

No. This calculator models your pension pot in isolation. If you’re also entitled to the State Pension, your total retirement income would be higher than the drawdown figures shown here, and you may need to withdraw less from your pot to meet your income needs.

Is pension drawdown right for me?

This calculator can’t tell you that – it depends on your full financial circumstances, other income sources, health, and attitude to investment risk. Pension Wise offers free, impartial government guidance, and a regulated financial adviser can help you decide what’s right for your situation.

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