Living Annuity Calculator
Estimate how long retirement capital may last with drawdowns, investment returns, inflation, and fees.
Your retirement details
Start with your age, savings, and a drawdown rate. Advanced assumptions use sensible defaults.
Currency
Your age today.
The amount invested in your living annuity.
The percentage of your savings withdrawn each year.
Estimated income
You could receive about £20,833 per month
Based on a 5% annual drawdown from £5,000,000, paid monthly.
Monthly income
£20,833
Estimated first-year monthly income.
Annual income
£250,000
5% of your retirement savings.
Projected ending balance
£5,000,000
Estimated balance at age 95.
Sustainability status
Looks sustainable to age 95
The projection reaches the selected age under the current assumptions.
Total withdrawals
£7,500,000
Total income drawn over the projection.
Total fees
£1,500,000
Estimated fees over the projection.
What this means
At a 5% drawdown, your first-year income is about £20,833 per month. With the current return, inflation, and fee assumptions, the projection lasts to age 95. Higher fees, lower returns, or larger withdrawals can reduce how long the annuity lasts. Because fixed drawdown percentage is selected, income can rise or fall as the balance changes each year. This is an estimate, not financial advice.
Projected balance
Estimated balance by age.
Peak scale: £5,000,000
Living annuity basics
What is a living annuity?
A living annuity is a retirement income product where your savings remain invested while you draw income from the fund. It gives flexibility, but the income is not guaranteed for life. Your result depends on how much you withdraw, investment performance, fees, inflation, and how long you need the money to last.
How it works
How the living annuity calculator works
Income estimate
Annual income equals capital multiplied by your drawdown rate. Monthly income divides that by 12.
Projection loop
Each year starts with the opening balance, adds investment growth, then subtracts fees and withdrawals.
Income mode
Income can recalculate as a percentage, stay level, or increase with inflation depending on the advanced setting.
Formula
Living annuity formula
First-year annual income
capital x drawdown rateThis is the starting income before splitting it into monthly payments.
Monthly income
annual income / 12The headline result always shows the first-year monthly estimate.
Ending balance
starting + growth - withdrawal - feesThe same calculation repeats until the selected projection age.
Drawdown
What is a safe drawdown rate?
Lower drawdowns
A lower drawdown usually gives your investments more room to recover and may help your capital last longer.
Higher drawdowns
A higher drawdown gives more income now, but it can increase the risk of falling income or capital depletion.
Drivers
What affects how long your living annuity lasts?
Withdrawal rate
The larger the annual withdrawal, the harder it is for the fund to keep up.
Investment returns
Higher returns can support income, while weak returns reduce the margin for error.
Inflation
Inflation-linked income can protect buying power but raises withdrawals over time.
Fees
Advice, platform, and fund fees reduce the amount left invested each year.
Age and longevity
A longer retirement needs a lower-risk plan than a shorter projection period.
Market volatility
Losses early in retirement can have a larger effect than losses later on.
Example
Living annuity calculator example
Using the default values, £5,000,000 invested at a 5% drawdown gives about £250,000 in first-year annual income, or about £20,833 per month. The projection then tests how that plan behaves up to age 95 using the return, fee, inflation, and income mode assumptions.
Important
Important disclaimer
This calculator provides an estimate for educational purposes only and is not financial advice. Living annuity rules, tax treatment, and product fees vary by country and provider. Consider speaking with a qualified financial adviser before making retirement income decisions.
FAQ
Living annuity questions
A living annuity is a retirement product that keeps your capital invested while you draw a flexible income. Income depends on investment performance, fees, inflation, and how much you withdraw.