Pension drawdown is the most flexible way to take income from a defined contribution pension. You leave the pot invested and withdraw money as you need it. The big question is: how long will the pot last?
Use the calculator below to model different withdrawal rates and growth assumptions. The 4% rule is a common rule of thumb, but research suggests UK retirees may want a slightly lower starting rate (around 3.5%) to account for sequence-of-returns risk and longer life expectancy.
Pension Drawdown Calculator
How long will your pension last? Adjust the sliders to see year-by-year balance.
Your details
Your projection
How this works: Real return is the return after inflation, so figures are in today's money. The calculator compounds your pot, subtracts the withdrawal each year, and tracks balance until depletion or your end-age. Guidance only — speak to an FCA-regulated adviser for a personalised plan.
How the calculation works
The calculator compounds your pot at the chosen real return (already adjusted for inflation), subtracts the annual withdrawal at the start of each year, and tracks the balance until it hits zero or you reach your hoped end-age.
The depletion risk percentage is a simplified estimate based on whether your withdrawal rate exceeds the safe-withdrawal threshold of around 4% in real terms. A more rigorous approach uses Monte Carlo simulation across thousands of return sequences — an FCA-regulated adviser can run this for you.
Why real return matters
Real return is your investment return after inflation. If your portfolio grows 5% but inflation is 3%, your real return is roughly 2%. Drawdown calculations should always use real returns so the answer is in today's purchasing power.