Pension Drawdown Calculator
UFPLS strategy · UK income tax applied · updates as you type
| Year | Pot (start) | Growth | Withdrawal | State Pension + other | Tax-free (25%) | Tax paid | Net annual | Net monthly | Pot (end) |
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How to use this drawdown calculator
Enter your pension pot value, the total gross income you want each year, and your assumptions for investment growth and inflation. The calculator simulates up to 40 years and shows your net income after tax, the tax you would pay each year, and — the number most people are really asking about — how long the pot lasts. Once your State Pension starts, it covers part of the target and the pot withdrawal shrinks accordingly; the year-by-year table shows that handover clearly, including the heavier "bridge year" withdrawals if you retire before State Pension age.
The withdrawal-rate badge next to your annual figure is a quick sanity check. Around 4% or below is generally considered cautious; between 4% and 5% is moderate; above 5% means you are relying on strong investment returns to avoid depleting the pot within a typical retirement. Try the presets to see how sensitive the outcome is to the growth assumption — it is usually the single biggest lever.
Why withdrawals are modelled as UFPLS
There are two common ways to take money flexibly from a defined contribution pension. You can take your 25% tax-free lump sum upfront and then draw taxable income from the rest (flexi-access drawdown), or you can take a series of lump sums where each one is 25% tax-free and 75% taxable — known as UFPLS. This calculator models the UFPLS route, which spreads your tax-free entitlement across the whole retirement and keeps more of the pot invested for longer. Our plain-English UFPLS guide covers the trade-offs, and the drawdown vs annuity guide looks at the alternative of a guaranteed income.
The tax calculation stacks the taxable 75% of each pot withdrawal on top of your State Pension and any other taxable income for that year, applies the personal allowance and income tax bands to the total — including the personal allowance taper above £100,000 — and shows the combined net income. This matters more than it sounds: a £20,000 pot withdrawal that is nearly tax-free on its own can cost over £2,800 in tax once a full State Pension sits underneath it, which is exactly why the calculator reduces pot withdrawals when the State Pension arrives rather than blindly drawing the same amount.
Frequently asked questions
What is a safe withdrawal rate from a pension?
A common rule of thumb is around 4% of the pot in year one, rising with inflation — at that level a diversified pot has historically lasted 30+ years in most scenarios. Above 5%, the risk of running out within a normal retirement rises sharply. This calculator flags your rate against those thresholds, but the "right" rate depends on your age, other income and how flexible your spending can be.
How is a UFPLS withdrawal taxed?
Each UFPLS (Uncrystallised Funds Pension Lump Sum) withdrawal is 25% tax-free, with the remaining 75% taxed as income at your marginal rate in the year you take it. This calculator applies the current England, Wales & NI income tax bands to that 75%, assuming it is your only taxable income. See our UFPLS guide for how this compares with taking your full tax-free cash upfront.
Does this calculator include the State Pension?
Yes — set your expected State Pension amount and the year it starts (check your forecast at gov.uk/check-state-pension). From that year it counts towards your income target, so the calculator automatically reduces what you draw from the pot, and it is included in your taxable income exactly as HMRC would tax it. You can also add other taxable income such as a defined benefit pension or rental income. Most free calculators skip all of this.
Is my data stored anywhere?
Everything runs in your browser. Your inputs are saved only on your own device so they are still there when you come back, and nothing is sent to any server.
This calculator is an illustration based on the figures you enter and the assumptions shown — it is not financial advice and no personal data leaves your device. Tax figures use England, Wales & NI income tax bands for the current tax year and consider only the income you enter here; Scottish bands differ. Investment returns are not guaranteed and tax rules can change. For decisions about your own pension, consider speaking to an FCA-regulated financial adviser. Full disclaimer.