Pension Drawdown Calculator (with State Pension)
Want to know if your retirement savings will last? A pension drawdown calculator can show you the way – and yes, it should include your State Pension too.
Think of a pension drawdown calculator as your retirement money map. It helps you see how long your pension pot might last based on how much you plan to take out each year. When you add in your State Pension, you get a clearer picture of all the money you’ll have coming in.
Why Use a Pension Drawdown Calculator?
Knowing how much money you can safely take from your pension each year isn’t simple guesswork. A good calculator helps you:
– See how long your pension savings might last
– Work out how much you can take each month without running out
– Understand how the State Pension fits into your income plan
– Test different scenarios to find what works best for you
Getting Started with Your Calculator
First, gather these key numbers:
– Your total pension pot
– How much State Pension you’ll get (you can check this on the government website)
– Your planned retirement age
– How much you think you’ll need each month
The calculator will then show you if your plans look good or if you might need to make some changes. It’s like having a preview of your retirement money before you make any big decisions.
Making Your Calculator Work Harder
Try these tips to get more from your pension drawdown calculator:
– Put in different amounts to see how taking more or less affects how long your money lasts
– Add in other income sources you might have
– Test what happens if you retire earlier or later
– See how different investment returns might change things
Remember: A pension drawdown calculator isn’t set in stone – it’s a tool to help you plan. Your needs might change, and that’s okay. You can always go back and try different numbers as your plans develop.
Getting Help
While calculators are helpful, they’re just one part of planning your retirement. If you’re unsure about anything, talk to a financial adviser. They can help you understand your options and make choices that work for you.
Start using a pension drawdown calculator today – it’s your first step toward a clearer view of your retirement future. The sooner you start playing with the numbers, the more time you have to adjust your plans if needed.
Using the calculator:
- Before starting, ensure you’re aware that nothing this calculator provides should be taken as financial advice.
- This calculator assumes a regular defined contribution pension only.
- Use a desired income OR annual drawdown, not both. By adding a desired income the drawdown % will be ignored.
- From April 2028 you won’t be able to access your private pensions until 57 – you’ll need to adjust your drawdown starting age to match.
- Expected inflation is a minefield, on my pension projection calculator I assume 3% for everything, here I give you the choice – the Government target is usually 2.5% but be more conservative with a higher number if you wish.
- You have the choice to display your income in today’s money or adjust it for inflation – depending on that choice, the growth figures with either include inflation or not.
- Drawdown from state pension age is also ignored if you set a desired income.
- Take home pay is calculated based on your country’s tax rules – currently working for England & Wales and Scotland.
- Remember it’s a bit of fun to see what you could end up with. I’m not an IFA and you should seek professional advice if you’re unsure about your retirement plans.
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