Pension withdrawal tool

squash18

I am looking for a good sipp pension withdrawal tool, where I can enter my sipp value and my age etc and it says how long my pot will last. I used to use one where you could alter the percentage returns etc and it would tell you how long before you run out of money. Does anyone know one, thanks 

trevjl

https://www.hl.co.uk/retirement/drawdown/calculator

tacpot12

The HL calculator doesn't do a bad job, but it only allows you to specify one level of drawdown. This is inappropriate for most UK residents as they will have a full state pension entitlement which mean that your drawdown requirement prior to the state retirement age (SRA) will be quite different to the requirement after it. You'll need £760 less per month once you reach SRA to have the same income. I don't know of a calculator that allows you to put in your state pension other than Firecalc, which might be a bit too complicated.  

gm0

For another web/downloadable PC tool - Flexible Retirement Planner.  Zero out the US tax functionality so it works gross.
Let's you play with return and its standard deviation range, inflation and add a state pension.
Not the easiest to drive/UI - it does not hold your hand.  There is some documentation but it assumes a fair amount of knowledge. You can let it run random returns simulations (1000s) so you get a sense of how your plan (WR) behaves under different assumptions about growth and inflation and variable income and what the "range" of possible outcomes looks like rather than the single "averaged out" case which obscures the brutality of sequence of return risk.

Another one focused on longevity is:

https://engaging-data.com/will-money-last-retire-early/

As usual caveat emptor

Brenster

Hi I have prepared my own on excel, it takes into account starting pot value (target), draw down age, assumed % return for each year (assumed at 4%), assumed inflation impact per year (assumed 2%), draw down amount per year, and i find it gives quite a useful insight into the length of time a pot will last and the massive impact a shift in drawdown amount, age you begin drawdown, % return, inflation impact can have cumuilitively.
It all has to be considered in todays money however, and excludes any tax which will come off your gross draw down numbers, to summarise,
If i reached a pot value of £550k at aged 60 (based on me being 60 now at todays values), i dont take the lump sum, and continue to earn 4% return, with 2% inflation impact, and i draw down £30k per year, until assumed aged 69 when my state pension retirement will kick in, at which point i reduce to £20k drawdown (remember my inflation 2% dealt with seperately), with the £10k state pension, it should still leave a pot of £150k + by the time i reach 80 (hopefully)
Note: There are lots of assumptions, and rounded numbers in these but i think it probably gives you the tools and answers you are looking for.  And can be tailored to suit, obviously the closer you are to retirement the more accurate / realistic it will be.  I would be happy to share if you wanted to message me.

squash18

I had one before where I change the return from say 5 to 6 per cent and see how it affects my pot and when I will run out. 

The only ones I see are the ones where they decide the returns.

Toucan13

The Aviva one allows you to include the state pension plus you can choose one of 3 levels of return.  It uses some fairly simple assumptions but in conjunction with some of the other suggestions might be worth a look?

Your details - Aviva

Albermarle

Another simple one
Retirement calculator (standardlife.co.uk)

coyrls

Avoid any tool or spreadsheet that assumes linear growth; they will give a false sense of security because they fail to address sequences of return, which is probably the biggest risk for pension withdrawals.

tacpot12

coyrls said:

Avoid any tool or spreadsheet that assumes linear growth; they will give a false sense of security because they fail to address sequences of return, which is probably the biggest risk for pension withdrawals.

One way to address this is to select your retirement portfolio so that the return is say 9% pa on average. Over time, the problems caused by sequence of return are offset by the greater growth of the portfolio in good years; i.e. you have to take a bit more risk than a simple calculator would suggest. 

Toucan13

This is in USD so will be using US data too (and obviously doesn't take into account SP) but does run Monte Carlo simulations and allows you to adjust the stock / bond / cash allocation (also gives you a probability that your savings will last for the number of years you choose) .  

Vanguard - Retirement Nest Egg calculator