Client Login 
Retirement assessment 
Book a call 
0117 990 2602 
Pension Drawdown Calculator
How long your pot lasts at the income you actually want, in today’s money and before tax
Pension Drawdown Calculator 2026/27
How long will your pension actually last?
One pot, one income, one growth rate. It shows how long the money lasts and nothing else, so the arithmetic stays easy to follow. Other income is deliberately left out.
What the numbers say (before tax)
,
What the pot does, year by year ,
,
Illustrative only, not financial advice. Assumes 3% investment growth a year after inflation and charges. Every figure is therefore in today’s money. The pot grows, then pays out each year. The State Pension and any other income are deliberately excluded, because those amounts differ for everyone and most people have more than one. The 4% figure is a guide rate, not a guarantee, real outcomes depend on the order of good and bad years, not just the average. Tax on withdrawals is deliberately excluded. Beyond the 25% tax-free element, drawdown is taxed as income. For most people that is the single biggest number planning can improve. Talk your figures through with us, the first conversation is free.
The two numbers that matter when you draw an income
Drawdown planning comes down to two numbers. The first is the income your pot can sustain, the old 4% guide rate says £20,000 a year from a £500,000 pot. The second, usually more useful, is how long the pot lasts at the income you actually want. They are rarely the same number, and the gap between them is where most drawdown mistakes live.
Withdrawals are rarely flat in real life. Retire at 60 and the pot may carry everything until other income starts. A State Pension, a defined benefit pension or rental income each reduce the load later on. Those amounts vary from person to person, so this calculator models the pot alone and leaves them out. Add them back and the pot usually lasts longer than the figure above.
Tax is the other lever. Beyond the 25% tax-free element, drawdown is taxed as income. How much you draw, in what order, and from which accounts changes what your family keeps. We've covered how to reduce tax on pension withdrawals and what happens when you crystallise a pension in detail. From April 2027, anything still sitting in drawdown joins your estate for inheritance tax. Our inheritance tax calculator models exactly what that change costs. What happens to your pension when you die explains the rules.
Frazer James is an independent, FCA-regulated firm of Certified Financial Planners. Advice covers the whole of the market, there is no initial fee, and the first meeting is free.
Sustainable income vs chosen income
The 4% guide rate tells you what the pot supports in theory. The calculator above tells you what happens at the income you actually want, and at what age the money runs out if the two disagree.
Your other income changes the picture
Your State Pension, any defined benefit pension and any rental income all reduce what the pot must cover. Those amounts differ for everyone, so the calculator leaves them out and models the pot on its own.
What's left joins your estate in 2027
Under the Finance Act 2026, unused drawdown funds count for inheritance tax from 6 April 2027. Spending order across pensions, ISAs and savings, long a tax question, is now an estate question too.
Since working together, I feel more organised, more secure and more positive about the future. The advice has been exceptionally valuable, financially, professionally and personally.
Questions people ask about pension drawdown
What is the 4% rule for pension drawdown?
A US study suggests withdrawing 4% of your starting pot each year, adjusted for inflation, has historically lasted a 30-year retirement. From £500,000 that means £20,000 a year. It is a starting point, not a guarantee. It ignores your State Pension, UK tax, charges and the risk of poor early returns. Even so, it is a useful sense-check against the income you were hoping to draw.
How do I calculate how long my pension will last in drawdown?
Project the pot forward a year at a time. Apply the growth rate, then subtract the income you take, and see which year the pot reaches zero. The calculator above runs exactly that projection in today's money, using 3% growth after inflation and charges. It deliberately excludes the State Pension and any other income, because those amounts differ for everyone.
Is drawdown better than an annuity?
They solve different problems. Drawdown keeps the money invested and flexible but transfers all the risk to you, the pot can run out. An annuity converts capital into a guaranteed income for life but is largely irreversible. Many good retirement plans use both: an annuity floor covering essential spending, drawdown for the rest. Which balance fits depends on your other income, health and appetite for risk.
Do I pay tax on pension drawdown withdrawals?
Usually 25% of your pension can be taken tax-free, within the lump sum allowance. Everything beyond that is taxed as income in the year you draw it. Large single withdrawals can push you into a higher tax band. Spreading the same money over two tax years can produce a materially different bill. This calculator deliberately shows pre-tax figures. The tax sequencing is where advice tends to pay for itself.
What happens to my drawdown pension when I die?
Today, unused drawdown funds usually pass to your beneficiaries free of inheritance tax. If you die before 75, they pass entirely tax-free. If you die after 75, the beneficiary pays income tax on them.
From 6 April 2027, under the Finance Act 2026, unused pension funds will also count as part of your estate for inheritance tax. Pensions passing to a spouse or civil partner will remain exempt.
For larger estates, that changes the arithmetic significantly.
Reviewed by
BSc, MLIBF, PETR, Chartered ALIBF · Co-Founder and Chartered Associate
Chris has spent over a decade in financial planning and specialises in research and technical analysis. He checks every figure and calculation on this page before it is published.
TALK TO A CERTIFIED FINANCIAL PLANNER
A free, no-obligation conversation about your pot, your income and how to make drawdown survive a real retirement. No cost, and no pressure to proceed.