Pension Drawdown · UK · 2025/26

How long will your pension pot actually last?

Take your 25% tax-free lump sum, choose a withdrawal level, set an assumed growth rate — and see the year-by-year projection. Find the sustainable withdrawal rate before the pot runs dry.

gov.uk/tax-on-pension · Free · No signup
Tax-free lump sum
£75,000
Drawdown pot
£225,000
Pot lasts
15 years
Total net withdrawn
£231,324
YearNet withdrawalGrowthPot end
1£16,000+£8,200£213,200
2£16,000+£7,728£200,928
3£16,000+£7,237£188,165
4£16,000+£6,727£174,892
5£16,000+£6,196£161,087
6£16,000+£5,643£146,731
7£16,000+£5,069£131,800
8£16,000+£4,472£116,272
9£16,000+£3,851£100,123
10£16,000+£3,205£83,328
11£16,000+£2,533£65,861
12£16,000+£1,834£47,695
13£16,000+£1,108£28,803
14£16,000+£352£9,155
15£7,324+£0£0

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How it works

25% tax-free lump sum

You can take up to 25% of your pension pot (the Pension Commencement Lump Sum) completely free of tax. From April 2024, the maximum tax-free amount is £268,275 (the Lump Sum Allowance). Any PCLS above this is taxed as income.

Tax on drawdown withdrawals

Money drawn from the remaining 75% of your pot is taxable as pension income — added to your other income in that year and taxed under PAYE. If you also receive a State Pension or employment income, those stack underneath and push your drawdown into higher bands.

Sustainable withdrawal rate

Financial planners often cite the "4% rule" (from Trinity Study) — withdrawing 4% per year from a diversified portfolio has historically lasted 30 years. At lower real returns or higher withdrawals, the pot depletes faster. Use the calculator to find your specific crossover point.

Sequence of returns risk

Poor market returns early in drawdown are much more damaging than poor returns late — because you are selling units at low prices to fund withdrawals. This calculator uses a flat annual growth rate; real-world returns are lumpy and sequence matters.

State Pension interaction

Include State Pension (£11,502/year in 2025/26 for a full record) as other income — it stacks underneath your pension withdrawals and uses up your Personal Allowance, meaning pension withdrawals get taxed sooner. Use this calculator's "other income" field for this.