Pension drawdown calculator
See how long your pension pot could last if you take regular withdrawals, and how much tax you would pay on them. This is an illustration based on the assumptions you choose, not a forecast.
Rules last checked 13 October 2026. Tax year 2026/27.
Your pot
The gross amount you take from the pot each year, at the start of each year.
Tax-free cash
Upfront means you take your tax-free lump sum first and every later withdrawal is taxable.
For example a State Pension or a salary. It uses up your tax-free Personal Allowance first.
Assumptions
These are example values, not predictions. Change them to test different outcomes.
Off keeps the 2026/27 tax bands the same in cash terms for every year.
Enter your pot value and yearly withdrawal to see how long your pot could last.
Nothing you enter leaves your device. This is an illustration, not financial advice. Speak to a regulated adviser or use free guidance before making decisions about your pension.
How pension drawdown works
With drawdown you leave your pension invested and take money from it as you need it. GOV.UK describes flexi-access drawdown as a way to invest your pot for a regular, adjustable income. You can usually take up to 25% of the amount built up in any pension as a tax-free lump sum, and the rest is usually taxed as income when you take it.
How this calculator works
The calculator works one year at a time. At the start of each year it takes your withdrawal from the pot and works out the tax on it. Whatever is left then grows for the rest of the year at your growth rate, minus charges. It repeats this until the pot cannot pay a full withdrawal, up to 60 years.
- Withdrawals are taken at the start of each year.
- Growth applies to what is left in the pot for the whole year.
- Tax uses the 2026/27 bands for England, Wales and Northern Ireland. Scotland is not covered.
- You get the full Personal Allowance, apart from any other income you enter.
- No State Pension, other pensions, National Insurance or inheritance tax are included.
- It is an illustration based on your assumptions, not a forecast.
Tax-free cash
You can usually take up to 25% of the amount built up in any pension as a tax-free lump sum. The most you can take is £268,275, the standard individual lump sum allowance for 2026/27. A protected allowance may increase the tax-free amount. According to GOV.UK, after taking the lump sum you have 6 months to start taking the remaining 75%.
The calculator offers two options. "25% of each withdrawal" makes a quarter of every withdrawal tax-free until the £268,275 limit is used up. "25% taken upfront" pays a quarter of your pot, up to £268,275, as a lump sum in year 1, and every later withdrawal is fully taxable.
Tax on withdrawals
Withdrawals are usually taxed as income. Your provider deducts any tax owed before paying you. Taking large amounts may mean you pay a higher rate of tax, and you could owe extra tax at the end of the tax year.
| Personal Allowance | £12,570 |
|---|---|
| Basic rate | 20% on taxable income up to £37,700 |
| Higher rate | 40% from £37,701 to £125,140 |
| Additional rate | 45% over £125,140 |
| Allowance reduction | £1 for every £2 of income over £100,000 |
Scotland has different income tax rates and is not covered by this calculator. In some situations you can claim a refund of tax taken from a pension payment.
When you can take your pension
It is not normally before 55. The normal minimum pension age rises from 55 to 57 on and after 6 April 2028. Check with your provider if you are unsure.
The money purchase annual allowance
A lower annual allowance applies when you flexibly access your pension, for example by taking income from a flexi-access drawdown fund or cash from your pot. For 2026/27 it is £10,000, compared with a standard annual allowance of £60,000. Check how it applies to you before taking money.
What this calculator does not include
- The State Pension, unless you enter it as other income.
- Annuities. Try the pension annuity calculator.
- Defined benefit pensions.
- Scottish income tax.
- National Insurance.
- Inheritance tax.
- Investment risk beyond the growth rate you choose.
- Provider charges beyond the single yearly percentage you enter.
Frequently asked questions
How does pension drawdown work?
With drawdown you leave your pension invested and take money from it as you need it. GOV.UK describes flexi-access drawdown as a way to invest your pot for a regular, adjustable income. Withdrawals are usually taxed as income.
How much of my pension is tax-free?
You can usually take up to 25% of the amount built up in any pension as a tax-free lump sum. The most you can take is £268,275, although a protected allowance may increase the tax-free amount.
When can I take my pension?
It is not normally before 55. The normal minimum pension age rises from 55 to 57 on and after 6 April 2028. Check with your provider if you are unsure.
How is drawdown income taxed?
Withdrawals are usually taxed as income, and your provider deducts any tax owed before paying you. Taking large amounts may mean you pay a higher rate of tax, and you could owe extra tax at the end of the tax year.
What is the money purchase annual allowance?
It is a lower annual allowance that applies when you flexibly access your pension. For 2026/27 it is £10,000, compared with a standard annual allowance of £60,000. Check how it applies to you before you take money.
Can my pension pot run out?
Yes. If your withdrawals are larger than your investment growth, your pot falls and can run out. Investments can go up or down, so the growth rate in this calculator is an assumption, not a forecast.
Does this calculator include the State Pension?
No. You can enter other taxable income, such as a State Pension amount you expect, in the "Other taxable income each year" box and the calculator will include it when working out tax.
Where can I get free guidance?
If you are 50 or over with a UK defined contribution pension, you can get a free, impartial Pension Wise appointment, which is backed by government. You can find it on the MoneyHelper website.
Sources
Rules checked against these official pages on 13 October 2026:
- GOV.UK: Lump Sum Allowance
- GOV.UK: How you can take your pension
- GOV.UK: Pension schemes rates and allowances
- GOV.UK: Increasing normal minimum pension age
- GOV.UK: Income Tax rates and Personal Allowances
- GOV.UK: Income Tax rates and allowances, current and past
- GOV.UK: Claim a tax refund on a pension payment
- MoneyHelper: Pension Wise
Read how we keep calculators accurate, or browse all UK calculators.
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