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Annuity vs drawdown

Annuity or drawdown?

The same pot bought as an annuity at typical rates, or drawn at that income until it runs out.

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What you enter: age at purchase · pension pot · annuity type · drawdown growth % a year.

Worked example

Annuity or drawdown — an example

Inputs
Age at purchase
66
Pension pot
£300,000
Annuity type
Level
Drawdown growth % a year
4%
Result
Annuity rate at that age
7.0%
Annuity income a year
£21,000
Drawing the same income, the pot
runs out at 87
Left in the pot at 90
£0

An annuity dies with you (or with the survivor for joint-life); the pot in drawdown passes on, taxed from 2027.

How it is worked out. Typical annuity rates by age from a dated table (level, RPI-linked, joint 50%); the drawdown is the same income drawn from a pot growing at the rate given.

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Not advice. Money Horizon is a planning indicator built on simplified rules. It does not know your full circumstances, cannot replace a regulated adviser, and its figures should not be relied on for any decision. It is not financial advice. Nothing you enter leaves your browser. Calculators use the 2026-27 rules; figures are estimates.