How long will your pension pot last?
Pension drawdown lets you keep your pot invested and take income flexibly, rather than buying an annuity. The trade-off is sustainability: draw too much and the pot can run out while you still need it. As a starting point, many use a 3–4% sustainable withdrawal rate — the well-known "4% rule" came from US research (Bengen, 1994), but UK and global studies often suggest 3–3.5% is more durable here, partly because of fees and lower expected real returns. Your own sustainable figure depends on growth, inflation, fees, your other income and how long you need the money to last.
Flexi-access drawdown vs UFPLS
Flexi-access drawdown (FAD)
You take up to 25% of your pot as tax-free cash (the Pension Commencement Lump Sum), capped at the Lump Sum Allowance of £268,275. The rest moves into drawdown, where every later withdrawal is taxed as income.
Uncrystallised Funds Pension Lump Sum (UFPLS)
There's no separate tax-free lump sum. Instead, each withdrawal is 25% tax-free and 75% taxable. This can suit people who want to spread tax-free cash across several years. Switch the calculator's drawdown type to compare the two.
How drawdown is taxed (2026/27)
Taxable pension income uses the standard rates: nothing on the first £12,570 (the Personal Allowance), 20% to £50,270, 40% to £125,140, then 45%. Two things catch people out:
- Emergency tax on a first withdrawal if your provider doesn't hold the right tax code — usually reclaimable from HMRC.
- The Money Purchase Annual Allowance (MPAA) of £10,000 — once you take taxable income flexibly, the most you can keep contributing to a DC pension with tax relief drops sharply.
Drawdown vs annuity
Drawdown keeps your money invested and flexible, but you carry the investment and longevity risk. An annuity swaps your pot for a guaranteed income for life. Many retirees blend the two — covering essential spending with guaranteed income and keeping the rest in drawdown for flexibility.
Frequently asked questions
How long will £300,000 last in drawdown?
It depends on your income, growth, fees and whether you also receive the State Pension. A 3–4% rate on £300,000 is roughly £9,000–£12,000 a year before tax — but use the calculator above with your own figures.
Is the 4% rule safe in the UK?
It's a useful starting point, not a guarantee. UK research often points to 3–3.5% as more durable. Markets, inflation and your spending pattern all matter.
Can I take 25% tax-free and still use drawdown?
Yes — under flexi-access drawdown you take up to 25% tax-free (capped at £268,275) and move the rest into drawdown.
What age can I access my pension?
Currently 55, rising to 57 from 6 April 2028. The State Pension is separate and paid from your State Pension age.
Assumptions & methodology
This tool models a defined-contribution pot year by year to your "plan to" age. Each year your target income rises with inflation; the State Pension (if included) is uplifted by inflation as a triple-lock proxy. We work out the gross withdrawal needed so your net income, after UK income tax, meets your target, then grow the remaining pot at your chosen rate net of fees. Figures use 2026/27 rates and are illustrations only — real returns, inflation, tax rules and your circumstances will differ.