Pension Income Drawdown Calculator
Your Income Drawdown Results
Pension Drawdown Overview
|Monthly income to age
|Monthly income to age
|Monthly income to age
|Conservative Growth Rate||2%|
|Expected Growth Rate||4%|
|Accelerated Growth Rate||6%|
These calculators help but sometimes it doesn't beat talking to a human. If you
need any support please do not hesitate to pop us a call on 02084327333.
Head of Pensions Advice at Drewberry
How Long Will Your Pension Last? Use Our Pension Drawdown Calculator
Using the above Pension Income Drawdown Calculator by Drewberry is easy and requires minimal information. The only detail you’ll need is how much your pension is worth. You can obtain this from your pension provider.
Alternatively, if you’re considering a final salary pension transfer to switch to a defined contribution pension that allows income drawdown, then you can enter your cash equivalent transfer value or CETV.
If you don’t have a CETV yet, then you can get an estimate of what your final salary pension could be worth if you transferred out using Drewberry’s Final Salary Pension Transfer Calculator.
Depending on your preference, our Pension Drawdown Calculator can show either:
- how much you could withdraw each month from your pension if you want your fund to last to a certain age
- how long your pension will last depending on your drawdown.
To work out how long your pension will last before it runs out, you’ll first need to calculate what you’ll be drawing down each month. This means considering how much cash you’ll need to live on in retirement. Don’t forget that many of us have lower expenses as we get older, chiefly because we’ve often repaid outstanding mortgages and generally spend less on leisure pursuits.
When calculating your required pension income, it’s also worth considering that most people will also get at least some state pension.
This can supplement your drawdown from your pension fund once you reach your state pension age and mean you don’t need to take as much out of your pension pot, potentially increasing the length of time your pension will last.
Will My Drawdown Pension Pot Run Out?
There is a risk that your pension might not last long enough if you choose income drawdown. That’s because the pot is finite, and every time you draw from it you reduce its total capital. The Drewberry Pension Drawdown Calculator is here to help.
However, the main alternative to income drawdown is currently buying an annuity. Although this will offer you a guaranteed income for the rest of your life, annuity rates are currently at historic lows.
What’s more, there’s no inherent flexibility in this method of securing a retirement income when you compare buying an annuity with pension income drawdown.
Income drawdown offers more control and flexibility than an annuity, as well as making it easier to leave a legacy to your loved ones after you’re gone.
You also don’t need to make an absolute choice between income drawdown and an annuity. While an annuity is irreversible, so you can’t buy an annuity then cash it in to enter income drawdown, you’re perfectly entitled to opt for income drawdown at first and then use any remaining funds at a later point to purchase an annuity if that’s what you prefer.
You’ll always have to keep in mind that your income drawdown pension could run out. However, a tool such as Drewberry’s Income Drawdown Investment Calculator is a good starting point on the road to seeking pensions advice and working with an adviser to create a tailored drawdown programme for you.
A pensions adviser can help calculate how long your drawdown pension will last and work out how much you can take from your pension each month so that it provides a retirement income for as long as you’ll need.
Wealth & Investments Expert at Drewberry
Need income drawdown pension advice?
Drewberry’s Income Drawdown Pension Calculator is designed to be used alongside our Income Drawdown Advice pages as a guide to help you understand more about this type of pension. We’ll also help you with your drawdown investments, deciding where to put your money to achieve the best chance of growth.
However, the calculator can’t offer financial advice – that’s what Drewberry’s team of pension experts is for. To get through to one of our expert income drawdown advisers, give us a call on 02084327333 to discuss your income drawdown needs.
We’re here to offer you advice on income drawdown and help you put together a customised drawdown programme to reduce the risk that your pension fund will run out sooner that you need.