Pension Drawdown Calculator
UFPLS strategy · UK income tax applied · updates as you type
| Year | Pot (start) | Growth | Withdrawal | 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 gross amount you want to withdraw in the first year, and your assumptions for investment growth and inflation. The calculator simulates up to 40 years of withdrawals 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.
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 applies the personal allowance and income tax bands to the taxable 75% of each withdrawal, including the tapering of the personal allowance on withdrawals large enough to push taxable income over £100,000.
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?
Not yet — the results assume your pension withdrawals are your only taxable income. If you also receive the State Pension or other income, more of each withdrawal will be taxed and some may fall into a higher band, so treat the tax figures here as a best case.
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 assume the amounts shown are your only taxable income; 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.