Keeping your pension invested and drawing an income? Enter your pot, the income you want and an assumed growth rate to see how many years your money is likely to last — and the age it might run out.
Flexible drawdown income
With flexi-access drawdown you leave your pension invested and take an income from it whenever you like. You can normally take 25% tax-free up front, and the remaining 75% stays invested. The trade-off versus an annuity is that you keep flexibility and growth potential, but you also carry the risk that markets fall or you live longer than your money lasts.
| Withdrawal rate | Rough longevity |
|---|---|
| 3% a year | Very likely to last 30+ years |
| 4% a year | Often considered sustainable |
| 6% a year | May exhaust in ~20 years |
| 8% a year | High risk of running out |
Drawdown income above your Personal Allowance is taxed — model it on the income tax calculator. Most retirees also receive the State Pension, which uses up part of your allowance first. If you prefer certainty, compare the guaranteed alternative on the annuity calculator.
It depends on pot, income and growth. Drawing ~4% a year is often sustainable for around 30 years; 6–7% can exhaust a pot in 15–20 years.
Keeping the pot invested and taking a flexible income, after up to 25% tax-free cash. You control withdrawals but carry the risk.
Yes — beyond the 25% tax-free cash, income is taxed at your marginal rate.
Yes — many people use drawdown early in retirement and buy an annuity later, when rates are typically higher with age.
