Calculators
Retirement Income Calculator
Model what your pension pot might be worth at retirement, and what annual income it could realistically provide.
Projected pot
£323,987
Annual income (4%)
£12,959
Monthly income
£1,080
Past performance is not a reliable indicator of future returns.
Find out if you're on track.
How this calculator works
This calculator projects your pension pot forward using compound growth: it takes your current pot, adds your annual contributions (assumed paid at the start of each year), and applies an annual growth rate net of charges.
It then estimates a sustainable annual retirement income using the widely-cited 4% rule — the level of withdrawal that historically had a high probability of lasting at least 30 years across a typical balanced portfolio.
The 4% rule is a guideline, not a promise. Real drawdown planning factors in sequencing risk, tax wrappers, the order in which you draw from pensions vs ISAs, the State Pension, and how income needs evolve through retirement. That's the work we do with clients.
Assumptions & limitations
- Growth rate is annual and net of charges
- Contributions are assumed paid at the start of each year
- Sustainable income uses the 4% safe-withdrawal rate as a guideline
- Inflation, tax and the State Pension are not included in the projection
The value of pensions & investments and any income from them can fall as well as rise and you may not get back the original amount invested.
Worked examples
Indicative figures based on the rates above. Your situation may differ — speak to an adviser before relying on these numbers.
£150,000 pot, drawing down at 65
Applying the 4% guideline.
Sustainable income: £6,000 per year at a 4% withdrawal rate, on top of the State Pension.
£300,000 pot, drawing down at 60
Earlier retirement means a longer drawdown horizon — using a more cautious 3.5% rate.
Sustainable income: £10,500 per year at 3.5% (£12,000 at 4%), before State Pension begins.
£500,000 pot, drawing down at 67
Aligned with State Pension age — drawdown and State Pension start together.
Sustainable income: £20,000 per year from the pot at 4%, plus the full new State Pension of £12,548 = £32,548 per year.
£80,000 pot plus full State Pension
Smaller pot supplementing the State Pension at 67.
Sustainable income: £3,200 from the pot at 4% + £12,548 full new State Pension = £15,748 per year.
Common questions
Is the 4% rule still safe?+
The 4% guideline came from US research and remains a sensible starting point for a balanced portfolio. UK research and current rate environments suggest 3.5–4.5% is a reasonable range depending on your portfolio and life expectancy.
Will my pension pot really grow at 5–7% a year?+
Long-run average returns on diversified portfolios have historically been in that range — but actual returns vary year-to-year, and past performance is not a reliable indicator of future returns.
Should I consolidate my pensions before retirement?+
Often yes, but not always. Consolidation simplifies management and can reduce charges, but some legacy pensions hold valuable guaranteed annuity rates or protected tax-free cash that you'd lose by transferring.
What's the difference between drawdown and an annuity?+
Drawdown keeps your pot invested and lets you withdraw flexibly. An annuity exchanges the pot for a guaranteed income for life. We model both — most clients use a blend.
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Want this applied to your situation?
Speak with one of our FCA-regulated advisers. No obligation.
The value of pensions & investments and any income from them can fall as well as rise and you may not get back the original amount invested.