How long will my pension pot last in drawdown?

It depends on three factors: the size of your pot, your annual withdrawal amount, and the investment growth rate achieved. This calculator projects year by year, showing when the pot would run out at your chosen withdrawal level. A pot of £200,000 with £10,000/year withdrawals at 4% growth would last approximately 35+ years.

What is a safe withdrawal rate from a pension?

The commonly cited "safe withdrawal rate" is 4% per year, based on historical research (the Bengen Rule). At 4%, a pot of £250,000 would generate £10,000/year and historically has lasted 30+ years. However, this is not guaranteed, especially in poor sequence-of-returns environments. Many UK financial planners recommend 3–3.5% to be prudent.

How much tax-free cash can I take from my pension?

You can take 25% of each pension pot as a pension commencement lump sum (PCLS), tax-free. Since the abolition of the lifetime allowance in April 2024, the maximum PCLS is £268,275 across all your pensions. You do not have to take it all at once, some drawdown products let you crystallise in stages.

What is the money purchase annual allowance (MPAA)?

Once you start taking flexible income from a drawdown pension (beyond the 25% tax-free cash), the money purchase annual allowance (MPAA) of £10,000 applies. This limits how much you can pay into defined contribution pensions each year. If you're still working and contributing, plan carefully before accessing drawdown.

Can I put money back into a pension in drawdown?

Once you trigger the MPAA by taking flexible drawdown income, your annual contribution limit to defined contribution pensions drops to £10,000 (down from £60,000). You cannot undo a drawdown trigger, so it's important to plan before you start taking income.

Updated 6 April 2026

Pension Drawdown Calculator · Free UK 2026/27

Project how long your pension pot will last, with year-by-year drawdown simulation at your chosen withdrawal rate and growth assumption.

✓ Free to use✓ Year-by-year simulation✓ 25% tax-free cash✓ Instant results

Pension Drawdown Calculator

Enter pot, withdrawal, and growth rate. Year-by-year projection appears instantly

Pension pot (£)

Annual withdrawal (£)

Growth rate (% p.a.)

Pot exhausted in year 38

Year 38

Withdrawal rate: 5.0% of pot, reduce withdrawals or increase growth to extend

Starting pot

£200,000.00

Annual withdrawal

£10,000.00

Growth rate

4% p.a.

Withdrawal rate

5.0%

Pot after year 5

£187,000.83

Pot after year 10

£171,185.34

Pot after year 15

£151,943.39

Pot after year 20

£128,532.61

Pot after year 25

£100,049.82

Pot after year 30

£65,396.15

Projections are illustrative only and assume a constant growth rate, actual returns vary. This is not financial advice. Seek independent regulated advice before accessing your pension.

How Pension Drawdown Works

Quick Answer: Pension drawdown keeps your pot invested while you withdraw income flexibly. The pot grows at your investment return but shrinks with each withdrawal. At a 4% withdrawal rate, a £200,000 pot withdrawing £8,000/year at 4% growth lasts indefinitely, but if returns are lower or withdrawals higher, the pot depletes faster.

What is Flexi-Access Drawdown?

Flexi-access drawdown lets you keep your pension invested and draw income as needed, there is no requirement to buy an annuity. You take 25% as a tax-free lump sum (PCLS, capped at £268,275), then draw taxable income from the remaining pot at any level. The key risk is investment performance and sequence of returns, poor early returns combined with high withdrawals can rapidly deplete a pot.

Formula

Pot (year n+1) = (Pot(year n) − withdrawal) × (1 + growth rate)

e.g. (£200,000 − £8,000) × 1.04 = £199,680 after year 1

Worked Example, £200,000 pot, £8,000/year, 4% growth

Starting pot£200,000

Annual withdrawal£8,000

Growth rate4% p.a.

Pot after year 5~£199,600

Pot after year 10~£197,400

Pot after year 20~£186,600

At a 4% withdrawal rate with 4% growth, the pot is approximately self-sustaining. Higher withdrawals or lower growth accelerate depletion.

Frequently Asked Questions

Pension drawdown (also called income drawdown or flexi-access drawdown) lets you keep your pension invested and withdraw money as and when you need it. Unlike an annuity, your income is not guaranteed and depends on investment performance and withdrawal rate. You can take your 25% tax-free cash first (up to £268,275) then draw taxable income from the remainder.