Portfolio & Retirement Details
UK Income Offsets
Income at Different Withdrawal Rates
Your Portfolio Analysis
Portfolio Longevity Estimate
Frequently Asked Questions
What is the 4% rule and does it apply in the UK?
The 4% rule, from the 1994 Trinity Study, suggests withdrawing 4% of your portfolio in year one and adjusting for inflation each year. UK research suggests 3.5% may be safer for UK investors due to higher UK inflation historically and lower equity returns.
How does the UK State Pension affect my withdrawal rate?
The full new State Pension is £11,502 per year (2025/26). This guaranteed income reduces how much you need to withdraw from your investment portfolio, significantly reducing your portfolio withdrawal rate and increasing longevity.
What is SIPP drawdown and how does it work?
SIPP flexi-access drawdown lets you take income directly from your pension pot while keeping it invested. You can take your 25% tax-free lump sum upfront or as tax-free portions over time. Remaining withdrawals are taxed as income.
What is the 25% tax-free lump sum from a SIPP?
You can take up to 25% of your pension pot (capped at £268,275 from April 2024) completely tax-free, either as a lump sum or in stages using Uncrystallised Funds Pension Lump Sums (UFPLS). This can fund early retirement years while deferring State Pension.
How does inflation affect retirement withdrawals?
UK inflation averages around 2.5–3% over the long term. A fixed withdrawal of £20,000 today will have the purchasing power of only about £12,000 in 20 years at 2.5% inflation. Always plan withdrawals to increase with inflation to maintain your standard of living.