Pension Drawdown Calculator
Calculate how long your pension pot will last with drawdown. See year-by-year projections with growth.
Last updated: April 2026 · Source: GOV.UK
Your Pot Will Last
17 years 5 months
After £62,500.00 tax-free lump sum
| Year | Withdrawn | Growth | Balance |
|---|---|---|---|
| 1 | £15,000.00 | £7,360.96 | £179,860.96 |
| 2 | £15,000.00 | £7,049.73 | £171,910.70 |
| 3 | £15,000.00 | £6,725.83 | £163,636.52 |
| 4 | £15,000.00 | £6,388.73 | £155,025.25 |
| 5 | £15,000.00 | £6,037.89 | £146,063.14 |
| 6 | £15,000.00 | £5,672.76 | £136,735.90 |
| 7 | £15,000.00 | £5,292.75 | £127,028.65 |
| 8 | £15,000.00 | £4,897.26 | £116,925.92 |
| 9 | £15,000.00 | £4,485.66 | £106,411.58 |
| 10 | £15,000.00 | £4,057.29 | £95,468.87 |
| 11 | £15,000.00 | £3,611.47 | £84,080.34 |
| 12 | £15,000.00 | £3,147.48 | £72,227.83 |
| 13 | £15,000.00 | £2,664.59 | £59,892.42 |
| 14 | £15,000.00 | £2,162.03 | £47,054.45 |
| 15 | £15,000.00 | £1,638.99 | £33,693.44 |
| 16 | £15,000.00 | £1,094.64 | £19,788.09 |
| 17 | £15,000.00 | £528.12 | £5,316.21 |
Disclaimer
This calculator is provided for informational purposes only and should not be considered as financial or tax advice. All calculations are performed locally in your browser — no personal data is collected or sent to our servers. Rates and thresholds are sourced from HMRC and GOV.UK and are updated for the current tax year. Always verify results with HMRC or consult a qualified professional before making financial decisions.
How It Works
Flexi-access drawdown lets you take 25% of your pension pot as a tax-free Pension Commencement Lump Sum (PCLS), then draw taxable income from the remaining 75% while keeping the pot invested. The tax-free portion is calculated at crystallisation: for a £200,000 pot, £50,000 is tax-free and £150,000 enters the drawdown fund. Withdrawals from the drawdown fund are taxed as earned income at your marginal rate.
Pot longevity projections model the balance between investment growth and withdrawal rate. The sustainable withdrawal rate depends on asset allocation, charges, and assumed growth. At a 4% withdrawal rate with 5% nominal growth and 0.5% charges, a pot typically lasts 30+ years. At 6% withdrawal, the same pot may deplete within 20 years. Sequence-of-returns risk means poor early performance disproportionately shortens pot life.
Income tax on drawdown withdrawals stacks on top of any other income including State Pension. The first £12,570 of total income is tax-free (personal allowance), then 20% basic rate to £50,270, 40% higher rate to £125,140, and 45% additional rate above that. The personal allowance tapers by £1 for every £2 earned above £100,000, creating an effective 60% marginal rate between £100,000 and £125,140.
Drawdown from a £300,000 pension pot at age 60
- Tax-free lump sum (25%): £300,000 x 25% = £75,000
- Remaining drawdown fund: £225,000, invested at assumed 5% growth minus 0.5% charges
- Annual withdrawal of £12,000 (approx 5.3% of drawdown fund)
- With State Pension of £11,500/year from age 66 and personal allowance of £12,570, drawdown taxed at 20% = £2,400 tax on £12,000 withdrawal
- Projected pot duration at this withdrawal rate: approximately 28 years (to age 88)
Source: GOV.UK
Frequently Asked Questions
- What is pension drawdown?
- Pension drawdown (also called flexi-access drawdown) lets you take income from your pension pot while the rest stays invested. You can usually take 25% of your pot tax-free and then draw income from the remainder, which is taxed as income.
- How much can I safely withdraw from my pension each year?
- A common guideline is the 4% rule, which suggests withdrawing 4% of your pension pot in the first year, then adjusting for inflation. However, sustainable withdrawal rates depend on investment returns, your age, and how long your pension needs to last.