Pension drawdown calculator

See how long your pension might last if you leave it invested and take a regular income, with the option to take your 25% tax-free cash first, raise your income each year, and see the tax on your first year's income.

Uses 2026/27 rates and allowances · Figures checked against official sources on 11 October 2026

Money lasts until about age

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Total income taken

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Tax-free cash up front

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First year income after tax

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How the drawdown calculator works

With drawdown, your pension stays invested and you take an income from it. The calculator takes your income at the start of each year, then grows what's left at your chosen rate after charges, and repeats until the money runs out or you reach 100. If you choose to raise your income each year, it rises by that percentage to help keep pace with prices. For tax, it assumes that if you don't take your tax-free cash up front, a quarter of each withdrawal is tax-free, and it adds the taxable part to any other income you enter, such as the State Pension.

Worked example

A £250,000 pension from age 60, growing 4% a year before 0.5% charges, with income rising 2% a year:

Starting income	Lasts until about	Total income taken
£12,000 a year	age 85	£375,866
£15,000 a year	age 79	£340,526
£20,000 a year	age 74	£311,051

Small changes in the income you take make a big difference to how long the money lasts. Real returns won't be steady, and a fall in the early years of drawdown does more damage than the same fall later on, because you're selling investments while prices are low. That's why many people take less in the early years or keep some cash aside.

Tax on pension drawdown

You can usually take up to 25% of your pension tax-free, up to £268,275 in total, either at the start or spread across withdrawals.
The rest is added to your other income and taxed at your income tax rates. Your first withdrawal is often taxed on an emergency code, and you can claim back any overpayment.
Once you take taxable money, the amount you can pay into defined contribution pensions with tax relief usually drops to £10,000 a year.
From 6 April 2027, unused pension savings will usually count towards your estate for inheritance tax.

When you can start and where to get help

Most people can take money from a personal pension from 55, rising to 57 from 6 April 2028. Drawdown is one option; others include buying an annuity, which pays a guaranteed income for life, or taking lump sums. If you're 50 or over, Pension Wise from MoneyHelper offers a free, impartial appointment to talk through the options. Our guides to SIPPs and pension tax relief explain the rules in more detail.

Sources

This calculator gives illustrations based on the figures you enter and the tax rules shown. It isn't personal financial advice. Our guides are general information and education, not personal financial advice. If you are unsure whether an investment is right for you, speak to a regulated financial adviser.