Pension Drawdown Calculator UK
Plan your retirement income from a UK defined contribution pension. See how much you can withdraw each year, how long your pot will last, and the tax implications — all in one place.
Pension Drawdown Planner
Estimate your retirement income and how long your pot lasts
Total value of your defined contribution pension (workplace, SIPP, personal)
Minimum is 55 (rising to 57 in 2028). State Pension age is currently 66.
UK average is around 81 for men and 85 for women — plan to live longer if possible.
Typical balanced portfolio: 3–5% net of charges. Conservative: 1–3%. Growth: 5–7%.
The ‘4% rule’ is a common starting point. Higher rates risk running out sooner.
Bank of England target is 2%. Long-term UK average is around 2.5–3%.
Your Retirement Income
Pension drawdown projection
Enter your pension details and click Calculate to see your projected annual income and how long your pot will last.
Sustainable Withdrawal Rates by Age
Rough guidance on what withdrawal rate may be sustainable depending on your retirement age and how long you need the pot to last. Based on the PLSA and industry research for a balanced (60/40) portfolio.
| Retirement Age | Years to Cover | Conservative Rate | Balanced Rate | Income on £250k pot |
|---|---|---|---|---|
| 55 | 35 yrs | 3.0% | 3.5% | £7,500 – £8,750 |
| 57 | 33 yrs | 3.1% | 3.6% | £7,750 – £9,000 |
| 60 | 30 yrs | 3.3% | 3.8% | £8,250 – £9,500 |
| 65 | 25 yrs | 3.6% | 4.2% | £9,000 – £10,500 |
| 67 (State Pension age) | 23 yrs | 3.8% | 4.4% | £9,500 – £11,000 |
| 70 | 20 yrs | 4.2% | 4.8% | £10,500 – £12,000 |
| 75 | 15 yrs | 5.0% | 5.8% | £12,500 – £14,500 |
| 80 | 10 yrs | 6.5% | 7.5% | £16,250 – £18,750 |
Pension Drawdown FAQ
Everything you need to know about taking income from your UK pension pot in drawdown.
Pension drawdown — officially called flexi-access drawdown — is a way to take income from your UK defined contribution pension without buying an annuity. You move your pot (or part of it) into a drawdown account, where it remains invested. You can then withdraw money flexibly whenever you want, in whatever amounts you choose. You can usually start from age 55, rising to 57 from 6 April 2028.
There is no legal limit on drawdown withdrawals — you can take as much or as little as you like. However, withdrawing too much too quickly risks running out of money in later life. A widely-used guideline is the ‘4% rule’ (withdraw 4% of your starting pot, adjusted for inflation each year), which research suggests gives a high probability of your money lasting 30 years. Sustainable rates depend on your age, investment returns, and life expectancy.
Yes. Under current UK rules you can take up to 25% of your pension pot as a tax-free lump sum, known as the Pension Commencement Lump Sum (PCLS). The remaining 75% is taxed as income when you withdraw it. The maximum tax-free amount is capped at £268,275 (25% of the former Lifetime Allowance of £1,073,100). Some older policies have enhanced protection allowing higher tax-free amounts.
You can currently access most UK private pensions from age 55. This minimum age will rise to 57 on 6 April 2028. Exceptions exist for certain protected retirement ages (e.g. some public-sector workers, athletes, and those with ill-health). The State Pension age is currently 66 for men and women, rising to 67 between 2026–2028 and 68 between 2037–2039.
A sustainable withdrawal rate is the percentage of your pension pot you can withdraw each year without running out of money over your expected retirement. Research by the Pensions and Lifetime Savings Association (PLSA) and others suggests 3–4% is broadly sustainable over 30 years for a balanced portfolio (roughly 60% shares, 40% bonds), before charges. The rate depends heavily on investment returns, inflation, charges, and how long you need the pot to last.
The first 25% of your pension is usually tax-free. The remaining 75% is taxed as earned income at your marginal rate: 0% within your Personal Allowance (£12,570 in 2024/25), 20% basic rate (£12,571–£50,270), 40% higher rate (£50,271–£125,140), and 45% additional rate (above £125,140). Drawdown withdrawals are added to other income such as State Pension, wages, and rental income, so large withdrawals can push you into a higher tax band.
The average UK defined contribution pension pot at retirement is around £70,000–£100,000, though this varies enormously. Median pots for people in their late 50s and 60s are typically between £50,000 and £150,000. Industry guidelines suggest you need roughly £12,800/year for a minimum retirement lifestyle, £23,300 for a moderate lifestyle, and £43,100 for a comfortable lifestyle (PLSA 2023 figures).
Any remaining pension pot can usually be passed to nominated beneficiaries. If you die before age 75, the remaining pot is typically paid completely tax-free. If you die at or after 75, the remaining pot is taxed as income in the hands of your beneficiaries at their marginal rate. You can nominate beneficiaries via an expression of wish form with your provider, and it’s wise to review this regularly.