Pension Withdrawal Calculator — Plan Your Retirement Income

Pension Withdrawal Calculator

Calculate your sustainable pension withdrawal strategy. Understand how withdrawal rate, investment returns, and inflation affect your retirement income sustainability.

Step 1: Retirement Details

4%

Understanding Withdrawal Rate

The 4% rule is a common guideline suggesting you can withdraw 4% of your pension balance annually with a high probability of not outliving your savings over a 30-year retirement.

Step 2: Investment & Inflation

5%
2.5%

About Investment Returns

Conservative portfolios typically yield 3-4%, balanced portfolios 5-6%, and growth-oriented portfolios 7-8% annually. Your actual returns will vary based on market conditions.

Pension Withdrawal Results

Summary
Strategy Comparison
Year-by-Year Projection

Annual Withdrawal Amount

£20,000
Estimated Sustainability: 30+ years
Initial Withdrawal
£20,000
Monthly Income
£1,667
Balance at Age 85
£350,450
Withdrawal Rate
4.0%

Withdrawal Strategy Comparison

Withdrawal Strategy Annual Income Success Rate Balance at 85 Risk Level

Pension Balance Projection

Pension Withdrawal Formula

Annual Withdrawal = Pension Balance × Withdrawal Rate

Your sustainable withdrawal amount depends on your pension balance, expected investment returns, inflation rate, and withdrawal strategy. The 4% rule is a common starting point but should be adjusted based on individual circumstances.

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