Annual income from different pot sizes

Income shown as sustainable annual withdrawal using the 4% drawdown rule. Annuity figures use estimated UK market rates (see Assumptions tab). State pension added from age 67 where applicable. All figures gross (before tax).

Drawdown simulator

3.5%

Chart shows pot value each year until depleted or age 100. State pension reduces withdrawals from the pot from age 67.

Annuity vs drawdown

Drawdown

Pot stays invested, can grow
Flexible — change withdrawals
Unused pot passes to heirs
Can top up with part-time work
Pot can run out if you live long
Investment risk — pot can fall
Requires active management

Annuity

Guaranteed income for life
No investment risk
Simple — set and forget
Can include partner's pension
No flexibility once purchased
Nothing left for heirs
Poor value if you die early
Fixed income erodes with inflation
Total received — annuity Cumulative drawdown cost

How much do I need to save?

4%
£500

All figures in today's money (real terms). Growth rate is after inflation. Tax relief on contributions not modelled explicitly — but contributing to a pension is effectively a ~25% boost for basic rate taxpayers (HMRC tops up your contribution).

Assumptions & methodology

Drawdown income (income matrix)

Uses the 4% rule — an evidence-based guideline suggesting you can withdraw 4% of your pot per year with a high probability of not running out over a 30-year retirement.


Annuity rates (estimated, 2025)

Retirement ageRate (%/yr of pot)
554.2%
605.0%
656.2%
707.8%

Single-life, level (non-inflation-linked) annuity. Inflation-linked annuities start ~30–40% lower. Enhanced rates available for smokers or those with health conditions.


State pension

Full new State Pension is £11,502/yr (2024/25). Qualifying age is 67. Requires 35 qualifying NI years.


Tax

All figures are gross (before tax). 25% of your pot can typically be taken tax-free. Withdrawals above £12,570/yr are subject to income tax. Consult an IFA for personalised tax planning.


Inflation

All figures are in today's money (real terms). Growth rates are after inflation.

Your inputs are saved in the page address — bookmark or copy the link to keep your scenario, or send it to someone to share it. This tool is for illustrative purposes only and does not constitute financial advice. Consult a regulated IFA before making pension decisions.