Work out pension drawdown plan instantly with clear inputs, formula shown and shareable results.
A drawdown plan takes an initial percentage and then increases it with inflation, here at 3% a year, while the remaining pot stays invested. Whether the pot survives depends on returns and, critically, on the order in which they arrive.
Drawdown
Balance ← balance × (1 + return) - withdrawal, with the withdrawal indexed each year
Figures are estimates for planning only. Prices, returns, inflation and personal circumstances all change. This is not financial or tax advice — speak to a qualified adviser before making decisions.
Poor returns in the early years, while the pot is largest, do permanent damage that later good years cannot repair.
It removes longevity and market risk entirely, at the cost of flexibility and any legacy value.