Since the pension freedoms in April 2015, more and more people are looking for more flexible ways to invest their pension savings. Income drawdown allows you to access your pension savings as and when you want, but as with all investments, there are risks involved. Once you've used the tool you can save and print out your results to refer to later on if you wish.
Using the tool
Our Drawdown Risk Calculator will help you to compare the income that you would receive from an annuity, with the same level of income taken with income drawdown. It will base the response on whether you're in excellent, reasonable, challenging or critical health.
Start by adding your total pension fund (after you have deducted any tax free and taxable cash lump sums). Once you click the 'Calculate risk' button, you can change the amount of income that you might take from income drawdown.
By looking at your retirement income needs, the tool will then calculate how likely you are to run out of money in retirement.
It's important to understand that the figures that we provide you with are for illustrative purposes only. The result will also be based on your gender, retirement age, current health, and pension fund, so make sure that you take the time to enter these as accurately as possible when you begin.
What next?
If you are worried about running out of money in retirement, it might be worth looking at our Retirement Budget Planner. You might also find it helpful to consider how long your retirement is going to be, by using our Longevity Calculator.