{"id":7581,"date":"2021-01-15T22:07:54","date_gmt":"2021-01-15T22:07:54","guid":{"rendered":"https:\/\/www.2020financial.co.uk\/?page_id=7581"},"modified":"2023-02-20T13:04:20","modified_gmt":"2023-02-20T13:04:20","slug":"pension-drawdown-calculator","status":"publish","type":"page","link":"https:\/\/www.2020financial.co.uk\/pension-drawdown-calculator\/","title":{"rendered":"Pension drawdown calculator"},"content":{"rendered":"\n\n\t<p>How long will my pension last\u200c?\u00a0<\/p>\n\t<h1>Pension Drawdown Calculator<\/h1>\n\t\t\t<a href=\"#calculator\" target=\"_self\" role=\"button\" rel=\"noopener\">\n\t\t\t\t\t\t\tTry our easy to use pension drawdown calculator\n\t\t\t\t\t<\/a>\n\t<p>Schedule a free discovery call with a Pension Transfer Specialist<\/p>\n\t\t\t<a href=\"https:\/\/www.2020financial.co.uk\/schedule-a-free-call\/\" target=\"_self\" role=\"button\" rel=\"noopener\">\n\t\t\t\t\t\t\tSCHEDULE A FREE CALL\n\t\t\t\t\t<\/a>\n<h3>\n\t\tHow much can you afford to take from your pension at retirement?\n\t<\/h3>\n\t<p>Pension drawdown enables you to use your pension pot to enjoy a regular retirement income, while allowing your investment to keep on growing in the background.\u00a0<\/p>\n<p>&nbsp;<\/p>\n<p>By using our pension drawdown calculator, you will:\u00a0<\/p>\n\t<ul>\n<li aria-level=\"1\">find out how much you can afford to draw from your pension at retirement\u00a0<\/li>\n<li aria-level=\"1\">discover how your retirement length will impact your pension pot over time<\/li>\n<li aria-level=\"1\">see the different impacts on your pension over the long term depending on how much you take out of it<\/li>\n<li aria-level=\"1\">get a better understanding of how much you need to save and put away for your retirement<\/li>\n<\/ul>\n<h3>\n\t\tHow our pension drawdown calculator works\n\t<\/h3>\n<p>Our pension drawdown calculator tests the value of your invested pension pot against real market conditions. It&#8217;s been programmed from UK market data across the last 120 years, including booms, busts, world wars and the UK and global stock market crashes; basically, every market condition you could ever imagine.\u00a0<\/p>\n<p>&nbsp;<\/p>\n<p>All you have to do is tell our calculator how big your pension pot is, how much you want to take in retirement income every year and how long you&#8217;d like to continue doing this for. We&#8217;ll do the rest.<\/p>\n<p>Of course, you can always contact us here for <a href=\"https:\/\/www.2020financial.co.uk\/pension-drawdown-advice-dft-1\/\">Pension drawdown advice<\/a>.<\/p>\n\t<!-- WEALTH META CALCULATOR START -->\n<iframe loading=\"lazy\" src=\"https:\/\/www.wealthmeta.com\/calculator_iframe_premium\/2020Financial\/retirement-withdrawal-calculator\" width=\"100%\" height=\"500\" frameborder=\"0\" id=\"iFrameResizer0\" scrolling=\"no\"><\/iframe>\n<!-- WEALTH META CALCULATOR END -->\n<h3>\n\t\tUser Guide for our Pension Drawdown Calculator\n\t<\/h3>\n\t\t\t\t\t<a href=\"#\" id=\"fl-accordion--label-0\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-0\">1. Length of Retirement<\/a>\n\t\t\t\t\t\t\t\t\t\t\t<a href=\"#\" id=\"fl-accordion--icon-0\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-0\"><i>Expand<\/i><\/a>\n\t\t\t\t\t<p>How long do you expect to live after you retire? Age 100? Age 85?<\/p>\n<p>Try our <a href=\"https:\/\/www.2020financial.co.uk\/life-expectancy-calculator\/\">life expectancy calculator<\/a>\u00a0as a guide.<\/p>\n<p>To be conservative, enter a higher value.<\/p>\n<p>Pressure test your pension pot against different lengths of retirement.<\/p>\n<p>So if you&#8217;re planning an early retirement at 55, you might want to test your pension pot for 30 years and again for 40 years.<\/p>\n<p>If you have a family history of living beyond 90 you may even want to stress test 50 years, obviously.<\/p>\n<p>If you don&#8217;t plan to retire until state pension age, you&#8217;ll probably find 40 years is an adequate length of retirement to stress test.<\/p>\n\t\t\t\t\t<a href=\"#\" id=\"fl-accordion--label-1\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-1\">2. Value of Pension at Retirement<\/a>\n\t\t\t\t\t\t\t\t\t\t\t<a href=\"#\" id=\"fl-accordion--icon-1\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-1\"><i>Expand<\/i><\/a>\n\t\t\t\t\t<p>If you know how much your pension pot is going to be worth at your retirement age you can add it here.<\/p>\n<p>If you&#8217;re not sure you can use our <a href=\"https:\/\/www.2020financial.co.uk\/retirement-savings-calculator\/\">Retirement Savings Calculator<\/a> to work out the value of your pension at retirement or use our <a href=\"https:\/\/www.2020financial.co.uk\/pension-forecast-calculator\/\">Pension Forecast Calculator<\/a> to see how much your pension might be worth.<\/p>\n<p>&nbsp;<\/p>\n\t\t\t\t\t<a href=\"#\" id=\"fl-accordion--label-2\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-2\">3. Annual Withdrawal \/ Income<\/a>\n\t\t\t\t\t\t\t\t\t\t\t<a href=\"#\" id=\"fl-accordion--icon-2\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-2\"><i>Expand<\/i><\/a>\n\t\t\t\t\t<p>How much you plan to withdraw in the first year (this amount does not include State Pension, other pensions, or other income sources, just the amount you plan to take out of your nest egg each year). During the simulations, the withdrawal amount is adjusted for inflation.<\/p>\n<p>Your Annual Withdrawal or Income can be expressed as an amount or a percentage of your pension pot. This is a gross figure, it does not take into account any\u00a0<a href=\"https:\/\/www.gov.uk\/tax-on-pension\" target=\"_blank\" rel=\"noopener\">tax that you will need to pay on your pension income.<\/a><\/p>\n<p>Our drawdown pension calculator will also provide you with a graph that shows how long your pension will last at this withdrawal rate.<\/p>\n\t\t\t\t\t<a href=\"#\" id=\"fl-accordion--label-3\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-3\">4. Withdrawal Percent<\/a>\n\t\t\t\t\t\t\t\t\t\t\t<a href=\"#\" id=\"fl-accordion--icon-3\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-3\"><i>Expand<\/i><\/a>\n\t\t\t\t\t<p>The percent of your pension pot you plan to withdraw in the first year to live on.<\/p>\n<p>A safe withdrawal amount is considered to be 4% or less.<\/p>\n\t\t\t\t\t<a href=\"#\" id=\"fl-accordion--label-4\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-4\">5. Your Portfolio Choices<\/a>\n\t\t\t\t\t\t\t\t\t\t\t<a href=\"#\" id=\"fl-accordion--icon-4\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-4\"><i>Expand<\/i><\/a>\n\t\t\t\t\t<p>How you choose to invest your pension pot will affect how your investments perform. High-risk investments might offer the chance of higher returns but they also come with the danger of higher volatility and potentially higher losses.<\/p>\n<p>This calculator gives you the chance to see how different investment decisions would have played out in numerous different market conditions. This is a great way to see how you really feel about risk and what kind or risk vs returns you might be comfortable with.<\/p>\n<p>We&#8217;ve given you the option of stress testing 6 different types of &#8216;ready-made&#8217; investment strategies<\/p>\n<ul>\n<li>Growth &#8211; higher risk investment funds &#8211;\u00a0 85% stocks &amp; 15% bonds<\/li>\n<li>Balanced &#8211; medium risk investment funds &#8211;\u00a0 55% stocks &amp; 45% bonds<\/li>\n<li>Cautious &#8211; lower risk investment funds &#8211; 35% stocks &amp; 65% bonds<\/li>\n<li>All stocks &#8211; based on\u00a0UK Equity Index and FTSE all-shares total return<\/li>\n<li>All bonds &#8211; based on Sterling UK Government bonds<\/li>\n<li>All cash &#8211; using Bank of England historical interest rates<\/li>\n<\/ul>\n<p>If you have a preference for how you like to split your investments between stocks, bonds and cash, you can enter custom figures here.<\/p>\n\t\t\t\t\t<a href=\"#\" id=\"fl-accordion--label-5\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-5\">About this drawdown calculator <\/a>\n\t\t\t\t\t\t\t\t\t\t\t<a href=\"#\" id=\"fl-accordion--icon-5\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-5\"><i>Expand<\/i><\/a>\n\t\t\t\t\t<p>Our drawdown calculator will help you understand the likelihood that your pension pot will last you through retirement.<\/p>\n<p>Remember that this calculator is based on historical UK market data and that past performance is not an indicator of future returns.<\/p>\n<p>What it offers is a chance for you to stress test your retirement plans against numerous market conditions.<\/p>\n<p>You can see how different retirement scenarios would affect your pension:<\/p>\n<ul>\n<li>How a longer or shorter retirement might affect your income<\/li>\n<li>How a larger pension pot might last or allow you to take a higher retirement income<\/li>\n<li>How more or less income might impact how long your pension pot will last<\/li>\n<li>How your investment choices could affect the value of your pension pot over time<\/li>\n<\/ul>\n<p>For a 30 year retirement period, this calculator will run a simulation from 1928 to 1958, then it will run a simulation from 1929 to 1959, then from 1930 to 1960, and so on. In simulations that go beyond the present year, it will wrap back to 1928 and count up from there. In this sense, the effect of the great depression is factored in for early and late starting years.<\/p>\n<p>Each individual simulation computes returns by stepping through the years (eg 1928, 1929, &#8230; 1958) and performs the following each year:<\/p>\n<ul>\n<li>Calculates the change in value in the portfolio.<\/li>\n<li>Adjusts the annual withdraw amount for inflation based on the CPI (consumer price index) for that year.<\/li>\n<li>Updates the portfolio balance by adding the change in value and subtracting the withdrawal amount.<\/li>\n<li>Rebalances the portfolio.<\/li>\n<\/ul>\n<p>This calculator is NOT a Monte-Carlo simulator in that it does not generate any fake or random data. Instead, this calculator uses historical UK data and backtests against it. Essentially it replays what happened in each of the years in the dataset given the inputs and then summarizes the results.<\/p>\n<p>Notes on Inflation:<\/p>\n<p>The numbers this calculator outputs are not inflation adjusted, they are nominal values. The numbers don&#8217;t translate to actual purchasing power in the starting year of the simulation. However, this calculator does adjust the withdraw amount by the CPI each year of the simulation.<\/p>\n\t\t\t\t\t<a href=\"#\" id=\"fl-accordion--label-6\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-6\">How You Can Use Our Pension Income Drawdown Calculator<\/a>\n\t\t\t\t\t\t\t\t\t\t\t<a href=\"#\" id=\"fl-accordion--icon-6\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-6\"><i>Expand<\/i><\/a>\n\t\t\t\t\t<p>If you&#8217;re trying to work out how much you can afford to take from your pension in retirement, our drawdown calculator is a handy tool to get you started. It assumes that your pension pot remains invested throughout your retirement and that dividends are reinvested. Whereas other drawdown calculators tend to use a standard annual inflation rate, ours will test the value of your invested pension pot against real market conditions.<\/p>\n<p>You can adjust the following variables:<\/p>\n<ul>\n<li>Retirement length<\/li>\n<li>Pension pot size<\/li>\n<li>Income amount<\/li>\n<li>Investment strategy<\/li>\n<\/ul>\n<p>Some insights into the results this tool unearths:<\/p>\n<ol>\n<li>You may be surprised to find that an &#8220;All Stock&#8221; portfolio is risky, but often not as risky in the long run as an &#8220;All Cash&#8221; portfolio. Why is this? Historically speaking, compared to cash, stocks have done a much better job of a) growing and b) keeping up with inflation.<\/li>\n<li>Looking at the simulation high and low numbers (which can be mind-bogglingly wide), luck plays a role in the individual&#8217;s outcome. The year in which you retire could make a huge difference, but you won&#8217;t know until it is too late. For example, the simulations show that people who retired in 1975 were in great shape because of the economic booms in the 80s and 90s, but the people who retired in the mid-&#8217;60s didn&#8217;t live long enough to recoup their early losses.<\/li>\n<li>Portfolios that blend stocks and bonds do a good job of bringing up the low end of the simulation, based on the historical data anyway. Diversification reduces risk but also reduces upside.<\/li>\n<li>Each simulation sticks to the parameters you select. It always rebalances every year and withdraws the right amount. In reality, life happens, emergencies happen, and investors panic and sell in bad times. This pension drawdown calculator is purely for illustrative purposes only.<\/li>\n<\/ol>\n\t\t\t\t\t<a href=\"#\" id=\"fl-accordion--label-7\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-7\">Pension Drawdown Calculator Assumptions<\/a>\n\t\t\t\t\t\t\t\t\t\t\t<a href=\"#\" id=\"fl-accordion--icon-7\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-7\"><i>Expand<\/i><\/a>\n\t\t\t\t\tThis calculator does not account for investments fees. The income amount is gross. You will need to adjust for taxes. This calculator does not take into account any State Pension you may receive. Cash figures are based on the\u00a0<a href=\"https:\/\/www.bankofengland.co.uk\/boeapps\/database\/Bank-Rate.asp\" target=\"_blank\" rel=\"noopener\">Bank of England base rate &#8211;\u00a0<\/a>interest added annually using end of year interest rate.\nBonds figures 1900 -2014: \u00a0Barclays Equity Gilt Study 2016 using the Gilt index, the index has been constructed to represent a portfolio of 15-year par yielding gilts. \u00a0In this study, total returns are calculated assuming income is reinvested at the end of the year. Bonds from 2015:\u00a0<a href=\"https:\/\/www.ishares.com\/uk\/intermediaries\/en\/products\/251806\/ishares-uk-gilts-ucits\" target=\"_blank\" rel=\"noopener\">\u00a0iShares Core UK Gilts UCITS ETF<\/a>,\u00a0this\u00a0Fund seeks to track the performance of an index composed of Sterling denominated UK government bonds, yield reinvested into total return. \u00a0The\u00a0<a href=\"https:\/\/markets.ft.com\/data\/etfs\/tearsheet\/historical?s=IGLT:LSE:GBP\" target=\"_blank\" rel=\"noopener\">total expense ratio<\/a>\u00a0of this fund has not been included to reflect the fact that an investor holding a gilt directly would not pay this charge.\nStocks\u00a0from 1900 &#8211; 2015:\u00a0\u00a0Barclays Equity Gilt Study 2016 using UK Stocks from 1900 &#8211; 2015, in this study, total returns are calculated assuming income is reinvested at the end of the year.\u00a0After 1985 we have used FTSE All-Shares total return\u00a0See:\u00a0<a href=\"http:\/\/www.swanlowpark.co.uk\/ftseannual\" target=\"_blank\" rel=\"noopener\">http:\/\/www.swanlowpark.co.uk\/ftseannual<\/a>\nCost of living index uses Barclay&#8217;s Equity Gilt Study 2016, UK Cost of Living Index from 1900 -&gt; 2014. For\u00a02015 and beyond it uses\u00a0<a href=\"http:\/\/www.swanlowpark.co.uk\/retail-price-index\" target=\"_blank\" rel=\"noopener\">http:\/\/www.swanlowpark.co.uk\/retail-price-index<\/a>\n<u><em>Again, this calculator uses backtesting. Past performance does not guarantee nor indicate future results.<\/em><\/u>\n\t\t\t\t\t\t\t\t\t<iframe allowfullscreen allow=\"autoplay\" src=\"https:\/\/www.youtube.com\/embed\/fi82oFKMIGc?feature=oembed&amp;start&amp;end&amp;wmode=opaque&amp;loop=0&amp;controls=1&amp;mute=0&amp;rel=0&amp;modestbranding=0\"><\/iframe>\t\t\t\t\t\t\t\t\t\t\n<h3>\n\t\tWhat does pension drawdown mean?\n\t<\/h3>\n\t<p><strong>Pension drawdown is a flexible way of accessing your defined contribution pension from age 55. It allows you access your pension in a number ways including:\u00a0<\/strong><\/p>\n<ul>\n<li><strong>taking a regular income in retirement, or<\/strong><\/li>\n<li><strong>taking one-off cash lump sums from your pension over time<\/strong><\/li>\n<\/ul>\n<p>With <a href=\"https:\/\/www.2020financial.co.uk\/pension-drawdown-advice-dft-1\/\">pension drawdown<\/a> you are free to take as much or as little as you want from your pension pot but it&#8217;s up to you to manage any withdrawals to make sure that you don&#8217;t run out of money.<\/p>\n<p>Our pension drawdown calculator will show how likely it is that your pension pot will last you through retirement.<\/p>\n<h3>\n\t\tHow much should I drawdown from my pension?\n\t<\/h3>\n\t<p>Experts recommend sticking to the safe withdrawal rate. It&#8217;s recommended that you don&#8217;t take more than 4% of your pension pot in 1 year.\u00a0<\/p>\n<p>In theory, this leaves enough of your pension invested that the growth of your investment over time should cover any withdrawals you make.<\/p>\n<p>This is important because none of us know how long we&#8217;re going to live and you might well live to see your 90s.<\/p>\n<p>In fact research released by the People&#8217;s Pension in 2021 showed that up to <a href=\"https:\/\/thepeoplespension.co.uk\/media-centre\/press-releases\/latest-new-choices-big-decisions-report-published\/\" target=\"_blank\" rel=\"noopener\">74 per cent of people could be spending their pension savings at a speed, which at best, means they will run out of money in their mid to early 80s<\/a>. So it&#8217;s more important than ever to not withdraw too much from your pension.<\/p>\n<h3>\n\t\tGetting the most out of our pension drawdown calculator\n\t<\/h3>\n\t\t\t01\n\t\t<h3>Length of retirement<\/h3>\n\t\t\t<p>The longer you live, the longer your pension must last. Stress-test your pension pot by adding in different lengths of retirement to see how it could impact you.<\/p>\t\t\n\t\t\t\t\n\t\t\t\t\t<a href=\"https:\/\/www.2020financial.co.uk\/life-expectancy-calculator\/\" role=\"button\" target=\"_self\" rel=\"noopener\">\n\t\t\t\t\t\tUse our life expectancy calculator as a starting point\t\t\t\t\t<\/a>\n\t\t\t\t\n\t\t\t02\n\t\t<h3>Value of pension at retirement<\/h3>\n\t\t\t<p>If you already know how much your pension pot is going to be worth by the time you retire, this is where you need to add in that figure. If not, we can help.<\/p>\t\t\n\t\t\t\t\n\t\t\t\t\t<a href=\"https:\/\/www.2020financial.co.uk\/pension-forecast-calculator\/\" role=\"button\" target=\"_self\" rel=\"noopener\">\n\t\t\t\t\t\tUse our retirement forecast calculator to get a clearer idea.\t\t\t\t\t<\/a>\n\t\t\t\t\n\t\t\t03\n\t\t<h3>Retirement income\u00a0<\/h3>\n\t\t\t<p>Consider how much you plan to withdraw in your 1st year of retirement (not including state pension, other pensions or income sources). Not sure how much income you&#8217;ll need in retirement?<\/p>\t\t\n\t\t\t\t\n\t\t\t\t\t<a href=\"https:\/\/www.2020financial.co.uk\/retirement-calculator\/\" role=\"button\" target=\"_self\" rel=\"noopener\">\n\t\t\t\t\t\tTry our retirement cost calculator\u00a0\u00a0\t\t\t\t\t<\/a>\n\t\t\t\t\n\t<p>Speak to a retirement planning specialist<\/p>\n\t<p>Filled in the calculator and not sure what the best course of action is for you? Arrange a free consultation with a member of our team. We&#8217;d love to connect.<\/p>\n\t\t\t<a href=\"https:\/\/www.2020financial.co.uk\/schedule-a-free-call\/\" target=\"_self\" role=\"button\" rel=\"noopener\">\n\t\t\t\t\t\t\tSchedule a call\n\t\t\t\t\t<\/a>\n\t<p>Frequently Asked Questions<\/p>\n\t\t\t\t\tHow much can I drawdown from my pension?\t\t\t\t\n\t\t\t\t\t<p>While it is possible to draw everything out of your pension, it isn&#8217;t a good idea. You will end up paying tax (at the highest rate) on 75% of your pension, meaning you stand to lose a substantial amount of your hard-earned investment.<\/p>\n<p>You can, however, take out 25% as a tax-free lump sum and leave the rest invested into funds designed to provide you with a regular taxable income. <\/p>\n<p>You set the income you want, although this might be adjusted periodically depending on the performance of your investments or changes to your lifestyle.<\/p>\n<p>It&#8217;s important to remember that your pension is supposed to support you for life. If you drawdown too much of your pension too quickly, you could run out of money in retirement and be forced to live on the state pension alone.<\/p>\n<p>\u00a0<\/p>\n\t\t\t\t\tHow can I avoid paying tax on my pension drawdown?\t\t\t\t\n\t\t\t\t\t<p>Pensions are taxable at your marginal rate of income tax, which means that you can use your personal tax allowance every year to access your pension without paying tax on it.\u00a0<\/p>\n<p>You can also access 25% of your pension pot tax-free; this means you can blend tax-free cash from your pension along with using your personal tax-allowance to access even more of your pension tax-free.\u00a0<\/p>\n\t\t\t\t\tIs it better to take monthly pension or lump sum?\t\t\t\t\n\t\t\t\t\t<p>A pension is a tax-efficient savings vehicle &#8211; one of the best around &#8211; but once you take your money out of your pension you start incurring tax on your withdrawals.<\/p>\n<p>If you don&#8217;t need to access your pension, then you&#8217;re better to leave it invested and take it as monthly income (rather than taking it out as a lump sum).\u00a0<\/p>\n<p>If you do decide to take your pension as a lump sum:<\/p>\n<p>\u00a0<\/p>\n<ul>\n<li>The first 25% is tax free but you&#8217;ll pay income tax on the rest at your highest rate<\/li>\n<li>You could be liable for other taxes if you reinvest your money elsewhere for example into property<\/li>\n<li>You could become liable for Inheritance tax at 40%<\/li>\n<\/ul>\n\t\t\t\t\tIs pension drawdown better than an annuity?\t\t\t\t\n\t\t\t\t\t<p>Pros and cons of pension drawdown include:<\/p>\n<p>\u00a0<\/p>\n<ul>\n<li>It&#8217;s flexible &#8211; you can take more when you need it and less when you don&#8217;t<\/li>\n<li>You can manage your withdrawals tax-efficiently<\/li>\n<li>You may be able to defer paying Lifetime Allowance tax until you are 75<\/li>\n<li>You can pass any left-over money onto beneficiaries free of Inheritance tax<\/li>\n<li>As long as it&#8217;s regulated by the FCA, it&#8217;s protected by the <a href=\"http:\/\/www.fscs.org.uk\/\" target=\"_blank\" rel=\"noopener\">Financial Services Compensation Scheme<\/a><\/li>\n<li>You can convert it to an annuity at any point in the future if you decide to.<\/li>\n<\/ul>\n<ul>\n<li>However, you need to manage your money carefully to make sure you don&#8217;t run out<\/li>\n<li>Once it&#8217;s gone, it&#8217;s gone. It&#8217;s not guaranteed for life like an annuity or Defined Benefit Pension<\/li>\n<\/ul>\n\n<p>Pros and cons of annuity include:\u00a0<\/p>\n<p>\u00a0<\/p>\n<ul>\n<li>It&#8217;s a guaranteed income for life: it will continue to pay out, even if you live to 120<\/li>\n<li>As long as it&#8217;s regulated by the FCA, it&#8217;s protected by the <a href=\"http:\/\/www.fscs.org.uk\/\" target=\"_blank\" rel=\"noopener\">Financial Services Compensation Scheme<\/a>.<\/li>\n<li>It can be adjusted for inflation (although not all annuity policies offer this)<\/li>\n<li>If you have life-limiting health issues it is possible to be offered a higher income due to your lowered life expectancy<\/li>\n<\/ul>\n<ul>\n<li>An annuity generally dies with you, and cannot be passed on to loved ones if you die young (although there are exceptions to this, they are rare and expensive).<\/li>\n<li>It offers a fixed income every month, so you can&#8217;t manage your income for tax-purposes or defer your Lifetime Allowance tax payment<\/li>\n<\/ul>\n\t\t\t\t\tWhat happens to a drawdown pension when you die?\t\t\t\t\n\t\t\t\t\t<p>A considerable benefit of drawdown pension is that it allows you to pass money on to any named beneficiary\/s after you die, totally free of inheritance tax.\u00a0 Depending on how old you are when you die, it could be free of income tax too.<\/p>\n<p>\u00a0<\/p>\n<p>It&#8217;s pretty straightforward: you just need to request and submit a &#8216;nomination of beneficiaries&#8217; form.<\/p>\n<p>\u00a0<\/p>\n<p>If you have several pension providers, you will have to do this with each of them.<\/p>\n\t<p>get retirement ready<\/p>\n<h3>\n\t\tYou&#8217;ve got the numbers; now it&#8217;s time to put it into action. \n\t<\/h3>\n\t<p>Download our FREE expert guide to discover everything you need to know about planning a comfortable retirement.<\/p>\n\t<p>Don&#8217;t miss<\/p>\n\t<p>Our most popular posts<\/p>\n\t<p>These are some of our most popular posts. \u00a0Click below or head over to our blog to see other helpful articles on pensions, retirement and investing.<\/p>\n\t<meta itemscope itemprop=\"mainEntityOfPage\" itemtype=\"https:\/\/schema.org\/WebPage\" itemid=\"https:\/\/www.2020financial.co.uk\/how-much-do-i-need-to-retire-at-55\/\" content=\"How much do i need to retire at 55\" \/><meta itemprop=\"datePublished\" content=\"2021-01-17\" \/><meta itemprop=\"dateModified\" content=\"2021-06-21\" \/><meta itemprop=\"name\" content=\"2020 Financial Ltd\"\/><meta itemprop=\"url\" content=\"https:\/\/www.2020financial.co.uk\/author\/simong2020\/\" \/><meta itemprop=\"name\" content=\"Simon Garber\" \/><meta itemprop=\"url\" content=\"https:\/\/www.2020financial.co.uk\/app\/uploads\/2021\/01\/How-much-do-i-need-to-retire-at-55.jpg\" \/><meta itemprop=\"width\" content=\"1024\" \/><meta itemprop=\"height\" content=\"683\" \/><meta itemprop=\"interactionType\" content=\"https:\/\/schema.org\/CommentAction\" \/><meta itemprop=\"userInteractionCount\" content=\"0\" \/>\n\t\t\t\t\t<a href=\"https:\/\/www.2020financial.co.uk\/how-much-do-i-need-to-retire-at-55\/\" title=\"How much do i need to retire at 55\"><\/a>\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.2020financial.co.uk\/app\/uploads\/bb-plugin\/cache\/How-much-do-i-need-to-retire-at-55-square.jpg\" alt=\"How much do i need to retire at 55_Simon garber retirement specialist\" itemprop=\"image\" data-no-lazy=\"1\" height=\"683\" width=\"1024\" title=\"How much do i need to retire at 55\" onerror=\"this.style.display='none'\"  \/>\n\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\tHow much do i need to retire at 55\t\t\t\t\t\t\t\t\t\t\t\n\t<meta itemscope itemprop=\"mainEntityOfPage\" itemtype=\"https:\/\/schema.org\/WebPage\" itemid=\"https:\/\/www.2020financial.co.uk\/can-i-retire-at-55-with-300k\/\" content=\"Can I Retire at 55 with \u00a3300k? + How Long it Will Last\" \/><meta itemprop=\"datePublished\" content=\"2020-05-26\" \/><meta itemprop=\"dateModified\" content=\"2021-01-18\" \/><meta itemprop=\"name\" content=\"2020 Financial Ltd\"\/><meta itemprop=\"url\" content=\"https:\/\/www.2020financial.co.uk\/author\/simong2020\/\" \/><meta itemprop=\"name\" content=\"Simon Garber\" \/><meta itemprop=\"url\" content=\"https:\/\/www.2020financial.co.uk\/app\/uploads\/2019\/03\/4.jpg\" \/><meta itemprop=\"width\" content=\"1920\" \/><meta itemprop=\"height\" content=\"960\" \/><meta itemprop=\"interactionType\" content=\"https:\/\/schema.org\/CommentAction\" \/><meta itemprop=\"userInteractionCount\" content=\"0\" \/>\n\t\t\t\t\t<a href=\"https:\/\/www.2020financial.co.uk\/can-i-retire-at-55-with-300k\/\" title=\"Can I Retire at 55 with \u00a3300k? + How Long it Will Last\"><\/a>\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.2020financial.co.uk\/app\/uploads\/bb-plugin\/cache\/4-1024x512-square.jpg\" alt=\"Financial advisor Simon Garber answering Can I retire at 55 with 300K\" itemprop=\"image\" data-no-lazy=\"1\" height=\"512\" width=\"1024\" title=\"Can I retire at 55 with 300K\" onerror=\"this.style.display='none'\"  \/>\n\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\tCan I Retire at 55 with \u00a3300k? + How Long it Will Last\t\t\t\t\t\t\t\t\t\t\t\n\t\t<!-- .pp-content-posts -->\n\t<p><a href=\"https:\/\/www.2020financial.co.uk\/blog\/\">Visit the blog<\/a><\/p>\n\t<p><strong>This pension drawdown calculator is provided for general information purposes only. It is a guide and does not reflect the actual amount that you will need in retirement.<\/strong><\/p>\n<p>Any information contained within this website should not be deemed to constitute\u00a0<strong>financial advice<\/strong>, and should not be relied upon as the basis for a decision to enter into a transaction, or as the basis for any financial or investment decision. It is provided for general information and it is vital (and in most cases a regulatory requirement) that you contact a\u00a0<strong>Financial Adviser\u00a0<\/strong>for tailored professional advice in regard to pension and retirement planning.<\/p>\n<ul>\n<li>No individual or company should act upon such information without receiving appropriate professional advice after a thorough examination of their particular situation. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of any articles.<\/li>\n<li>If you are a member of a pension scheme with safeguarded benefits, it is likely it would be in your best interests to retain the safeguarded benefits.<\/li>\n<li>Make sure you understand all the risks before investing.<\/li>\n<li>The value of investments and the income they produce can fall as well as rise and you may not get back your original investment. Past performance is not a reliable indicator of future results.<\/li>\n<\/ul>\n\n","protected":false},"excerpt":{"rendered":"<p>How long will my pension last\u200c?\u00a0 Pension Drawdown Calculator Try our easy to use pension drawdown calculator Schedule a free discovery call with a Pension Transfer Specialist SCHEDULE A FREE CALL How much can you afford to take from your pension at retirement? Pension drawdown enables you to use your pension pot to enjoy a&hellip;<\/p>\n","protected":false},"author":8,"featured_media":4770,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"_links":{"self":[{"href":"https:\/\/www.2020financial.co.uk\/wp-json\/wp\/v2\/pages\/7581"}],"collection":[{"href":"https:\/\/www.2020financial.co.uk\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.2020financial.co.uk\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.2020financial.co.uk\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.2020financial.co.uk\/wp-json\/wp\/v2\/comments?post=7581"}],"version-history":[{"count":2,"href":"https:\/\/www.2020financial.co.uk\/wp-json\/wp\/v2\/pages\/7581\/revisions"}],"predecessor-version":[{"id":8668,"href":"https:\/\/www.2020financial.co.uk\/wp-json\/wp\/v2\/pages\/7581\/revisions\/8668"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.2020financial.co.uk\/wp-json\/wp\/v2\/media\/4770"}],"wp:attachment":[{"href":"https:\/\/www.2020financial.co.uk\/wp-json\/wp\/v2\/media?parent=7581"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}