Retirement Drawdown & Annuity Simulator

Simulate how long your retirement pot will sustain your desired income. Balance flexible drawdown against guaranteed lifetime annuities and test upfront tax-free cash withdrawals.

Simulation Parameters ← All Calculators

Starting Pension Pot £250,000

Total value of all accumulated private & workplace pensions

Income Target Basis

Target reflects spending take-home cash; gross withdrawal needed is solved automatically with UK income tax.

PLSA Living Standards Benchmark

Click any official UK PLSA standard to auto-fill your annual income target.

Target Take-Home Income £15,000

Target net annual cash required to spend in retirement

Annuity Allocation Split 25%

Percentage of pot used to buy a guaranteed lifetime annuity

Investment Growth Rate

Annual gross portfolio return on remaining invested pot

Platform & Investment Charges

Ongoing platform fee & fund management drag (typical UK SIPP: 0.45% – 0.75%)

Annuity Payout Rate

Pricing Basis: Level payout, Single Life, Nil Guarantee · Benchmark Best-Buy Rates (Sep 2026)

Tax-Free Cash (PCLS) Option

Sustainable

Hybrid Drawdown Pot

100% Flexi-Drawdown Baseline

Guaranteed Annuity Line

Target Take-Home (Net)

£15,000/yr

PLSA: Minimum (£14,400/yr)

Gross Withdrawal Needed

£9,919/yr

Estimated Pot Lifespan

Sustainable

Est. Annual Income Tax

£608/yr

Annuity Purchase: £62,500 (25%) | Drawdown Pot: £187,500 (75%)

Impartial Statutory Guidance: This simulator is an educational projection tool designed to illustrate decumulation dynamics and does not constitute regulated financial advice. Calculations incorporate standard UK income tax bands (Personal Allowance £12,570), CPI inflation escalation, fund charges, benchmark best-buy annuity pricing basis (Level payout, Single Life, Nil Guarantee, September 2026), and the statutory £268,275 Lump Sum Allowance cap (Finance Act 2024). Planning a flexible lump sum? Check Month 1 PAYE overpayments and HMRC reclaim forms with our Emergency Tax Guide & Reclaim Calculator. For free, impartial guidance on decumulation options and annuity rates, visit MoneyHelper or book a session with Pension Wise.