Pension Drawdown Calculator
Updated on 22 Oct 2026 · Checked by Aotob
Taking $24,000 a year, rising with inflation, your $400,000 pot lasts 23 years.
It runs out around age 89.
Your pot runs out at
age 89
Taking 6% a year is high; 3.5% to 4% is a common guide for a pot to last 30 years. A bad few years early on hurts most.
Show the working
Each year: pot × (1 + 5%) − withdrawal; withdrawal rises 2.5% a year
Pot by year
How long it lasts by withdrawal
| A year | Rate | Lasts |
|---|---|---|
| 18,000 | 4.5% | 34 years |
| 21,000 | 5.3% | 27 years |
| 24,000 | 6% | 23 years |
| 27,000 | 6.8% | 20 years |
| 30,000 | 7.5% | 17 years |
Questions people ask
What is pension drawdown?
Leaving your pot invested and taking an income from it, instead of buying an annuity. The income isn’t guaranteed and the pot can run out.
What is a safe withdrawal rate?
The “4% rule” comes from US data over 30 years. Many planners now use 3% to 3.5% for longer retirements or lower expected returns.
Is drawdown income taxed?
Usually, as income. In the UK 25% of the pot can be taken tax-free; in Australia account-based pensions are tax-free from 60.
Updated 22 Oct 2026Source: Standard loan maths, checked October 2026Checked by AotobSteady return each year; real markets go up and down, which can make the pot run out sooner.Report an issue