Pension Drawdown Calculator UK
Simulate flexi-access pension drawdown: how long does the pot last, and what's left at the end?
Starting pot
Up to £268,275 lifetime, uses Pension Commencement Lump Sum allowance.
Drawdown plan
Will be increased each year by inflation.
UK life expectancy at 65 is ~85 (male) / 87 (female). Plan for at least 30 years.
⚠️ Pot exhausted
In year 19
£20,000/year (rising with inflation) is too aggressive for this pot and return. Try a lower withdrawal or higher return.
Pot balance over time
Bar shows balance after that year's growth and withdrawal. The remaining pot continues to grow at 5% while drawing increasing real-terms income.
Pension drawdown basics
Since the 2015 pension freedoms, anyone aged 55+ (rising to 57 from April 2028) can leave a Defined Contribution pension invested and draw an income from it. You stay invested for potential growth but bear the investment risk yourself, the opposite of an annuity.
The pot continues to belong to you. On death, it can usually be passed to beneficiaries free of IHT (though that's changing from April 2027, see below).
You can usually take 25% of your pension as a tax-free lump sum (the "Pension Commencement Lump Sum"). The lifetime cap on tax-free PCLS is £268,275 (formerly £1.073m × 25%). Anything above that PCLS limit is taxed at marginal income tax rates.
You don't have to take it all at once: under UFPLS or phased drawdown, 25% of each withdrawal can be tax-free.
Related calculators
Other free UK tools that follow on from this calculation.
Pension Calculator
Project workplace auto-enrolment and SIPP contributions to estimate retirement income.
Annuity Calculator
Convert a pension pot into a guaranteed retirement income, single or joint life.
State Pension Calculator
Check your State Pension age and estimate weekly pay at the £241.30 full new rate.
Inheritance Tax Calculator
IHT at 40% (or 36% with 10% to charity) using both nil-rate bands and spouse transfers.