Pension Drawdown Projection
Enter details to see how your pension pot performs over time with flexible withdrawals.
Steps to Project
- Input your pension pot value and current age.
- Set desired yearly withdrawal amount after any tax-free cash.
- Select investment mix matching your risk level: cautious prioritises stability, moderate balances growth, adventurous seeks higher returns.
- Adjust inflation and fees; growth scenario reflects post-retirement averages.
- Click project to view table up to age 100 or depletion.
Calculation Basis
Each year starts with prior balance, adds net growth (mix return minus inflation and fees), then subtracts inflation-adjusted withdrawal. Tax-free cash deducts upfront from pot. Growth rates: cautious 3-5% net, moderate 4-6%, adventurous 5-7%; scenarios adjust: pessimistic -1% to +4%, middling 0.5-7.25%, optimistic 1-8%. Depletion shown when balance hits zero. Sustainable rate flags if over 4-5% initial withdrawal per age. [web:3][web:4]
Frequently Asked Questions
- Can I take 25% tax-free? Yes, up to 25% of pot as lump sum; remainder invested for income, taxed on withdrawal.
- What if markets fall? Balances reflect volatility risk; lower growth scenarios simulate downturns.
- Does it account for State Pension? Add as separate income; this focuses on private pot only.
- Recalculate yearly? Yes, review annually as rules or returns change.
- Inheritance after death? Remainder passes to beneficiaries; tax-free if before 75, rules shifting 2027.
Annuity vs Drawdown
| Aspect | Annuity | Drawdown |
|---|---|---|
| Income Type | Fixed for life | Flexible, adjustable |
| Growth Potential | None after purchase | Invested, possible increase |
| Risk Level | Low, guaranteed | Higher, market exposed |
| Inheritance | Usually none | Pot remainder possible |
| Flexibility | Locked in | Change withdrawals anytime |
Common Pitfalls
- Over-withdrawing early: High initial rates deplete faster in low-growth years.
- Ignoring fees/inflation: Erodes real value; always net them out.
- Sequencing risk: Early market drops amplify losses on sold assets.
- Forgetting tax: Withdrawals count as income, pushing into higher bands.
- No review: Life changes require annual checks against projections.
References
GOV.UK. (2025). Drawdown pension tables. https://www.gov.uk/government/publications/drawdown-pension-tables
Which?. Pension drawdown calculator. https://www.which.co.uk/money/pensions-and-retirement/accessing-your-pensions/pension-income-drawdown/income-drawdown-calculator-making-your-money-last-ajWVD8L3bN92
Hargreaves Lansdown. Pension drawdown calculator. https://www.hl.co.uk/retirement/drawdown/calculator
Money.co.uk. Pension drawdown calculator. https://www.money.co.uk/pensions/pension-drawdown-calculator
Almond Financial. Pension drawdown calculator. https://www.almondfinancial.co.uk/pension-drawdown-calculator/
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