A free drawdown calculator that includes the things most leave out: tax on each withdrawal, the tax-free cash limit, inflation, and the real published charges of the platform you choose.
It projects a UK pension in flexi-access drawdown year by year. Enter your pot, whether you take tax-free cash first, the yearly income you want and whether it rises with inflation. Choose a platform to apply its published charges, and set fund charges, growth and inflation. The calculator shows whether the pot lasts, how much is left (also in today's money), your starting withdrawal rate, your first-year income and income tax, and the total charges and tax paid, plus a year-by-year table. Every input is kept in the page address, so you can copy a link that reproduces your results.
It's an illustration, not financial advice. It assumes the same growth and inflation every year; real returns vary, and a fall early in retirement can shorten how long a pot lasts. The "What if markets fall early?" option shows an example: a 20% fall in each of the first two years, followed by higher returns so the average return is unchanged.
The 4% rule comes from William Bengen's 1994 study of US market history: withdraw 4% of your initial pot in year one and increase that amount with inflation each year after, and in the past the money usually lasted around 30 years. A commonly quoted starting point is 3–4% a year; no rate is guaranteed. UK returns, charges, tax and how long you live can all differ from the study.
Usually up to 25% of your pot can be taken tax-free, capped at £268,275 for most people. The rest is taxed as income at your marginal rate when you draw it. UK income tax bands change each April. For 2026/27 in England, Wales and Northern Ireland they are: Personal Allowance £0–£12,570 (0%), Basic Rate £12,571–£50,270 (20%), Higher Rate £50,271–£125,140 (40%), Additional Rate above £125,140 (45%). The Personal Allowance falls by £1 for every £2 of income over £100,000. Scotland has its own rates and bands. Check GOV.UK or mygov.scot for the current rates.
Once you take any taxable income from your pension, the Money Purchase Annual Allowance (MPAA) reduces your future pension contribution limit from £60,000 to £10,000 per year.
A planning rule of thumb from William Bengen's 1994 study of US market history: take about 4% of your pot in the first year and raise the amount with inflation after that, and in the past the money usually lasted around 30 years. A commonly quoted starting point is 3–4% a year; no rate is guaranteed. UK returns, charges, tax and how long you live can all differ from the study.
Usually up to 25% of your pension can be taken tax-free, capped at £268,275 for most people (the Lump Sum Allowance). The rest is taxed as income in the year you take it, added to any other income such as the State Pension. This calculator works out that tax using 2026/27 bands, including the reduced personal allowance above £100,000, with Scottish rates as an option.
Charges come out of the pot every year, so they reduce both the money you have and the growth on it. Over 20 or 30 years, the difference between a low-cost and a high-cost platform can be tens of thousands of pounds. Try switching the platform in the calculator to see it.
Drawdown keeps your money invested and flexible but can run out; an annuity pays a guaranteed income for life but gives up flexibility. Many people combine the two. Our drawdown vs annuity guide sets out the trade-offs.
It is an illustration, not a forecast. It assumes the same growth and inflation every year, which real markets never deliver. A fall early in retirement can shorten how long a pot lasts; turn on "What if markets fall early?" to see an example. It is not personal advice.
Free, impartial guidance: Pension Wise offers free appointments to people aged 50 or over with a defined contribution pension, and MoneyHelper’s investment pathways comparison tool compares drawdown providers’ ready-made options. Both are backed by the government.