Pension Drawdown Plan Calculator

Work out pension drawdown plan instantly with clear inputs, formula shown and shareable results.

About Pension Drawdown Plan Calculator

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.

Formula

Drawdown

Balance ← balance × (1 + return) - withdrawal, with the withdrawal indexed each year

Worked example

With the default values below, Pension Drawdown Plan Calculator returns First Year Income of $810,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Pension Potminimum 0: 18,000,000
Initial Drawdown Rateaccepts 1–12 %: 4.5 %
Expected Returnaccepts 0–100 %: 7 %
Years Of Drawdownaccepts 1–45: 25

Results

First Year Income: $810,000.00
Pot Remaining At The End: $30,187,279.64
Total Withdrawn: $29,532,004.10
Monthly Income In The First Year: $67,500.00

Step by step

1Values used
2Drawdown
3First Year Income= 810,000.00
4Pot Remaining At The End= 30,187,279.64
5Total Withdrawn= 29,532,004.10
6Monthly Income In The First Year= 67,500.00

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
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.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

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.

Frequently Asked Questions

What is sequence risk?

Poor returns in the early years, while the pot is largest, do permanent damage that later good years cannot repair.

Is an annuity safer?

It removes longevity and market risk entirely, at the cost of flexibility and any legacy value.