Pension Drawdown Rate Calculator
Sustainable drawdown rate from your pot.
Calculate annual income from a pension pot at a given withdrawal rate. Shows annual and monthly income from the values you enter.
What this tool does
Enter pension pot and withdrawal rate. The tool shows annual and monthly income.
Enter Values
Formula Used
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Calculations, display, or translation — let us know.
Disclaimer
Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.
400,000 pot at 4% rate = 16,000 annual = 1,333/month. At 3% (safer long retirement): 12,000. At 5% (aggressive): 20,000. Rate choice drives income materially. Lower rates last longer but yield less; higher rates boost income but risk running out.
Quick example
With pension pot of 400,000 and withdrawal rate of 4%, the result is 16,000.00. Change any figure and watch the output shift — it's often more useful to see the pattern than to memorise the formula.
Which inputs matter most
You enter Pension Pot and Withdrawal Rate. Not every input has equal weight. Flip one at a time toward extreme values to feel which ones move the needle most for your situation.
What's happening under the hood
Pot × rate = annual income. The formula is listed in full below. If the number looks off, you can retrace the calculation by hand — that's the point of showing the working.
Turning the result into a plan
A projection is just a starting point. The real work is setting the monthly amount aside automatically so the saving happens before you can spend it. Most people who hit savings goals set up a standing order on payday; most who miss them rely on willpower at month-end.
What this doesn't capture
The calculation assumes a steady savings rate and a stable interest rate. Real saving journeys include emergencies, windfalls, and rate changes — especially in easy-access products. The figure is a direction of travel, not a guarantee.
Where to go next
This calculation rarely sits alone in a planning exercise. If you're running these numbers, you'll probably also want the safe withdrawal rate calculator, the retirement pot size calculator, and the pension drawdown sustainability calculator — each one answers a different question in the same territory. Treating them as a set rather than in isolation usually produces a more honest picture.
Pension drawdown produces an annual income based on the inputs provided.
Inputs
This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.
Sources & Methodology
Methodology
Pot × rate = annual income.
References
Frequently Asked Questions
Safe rate for my age?
Include state pension?
Flexible drawdown?
Tax on drawdown?
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