Is £200,000 enough to retire on?
A £200,000 pension pot gives you £19,502/yr through drawdown plus the state pension — that's £375/week. Here's how that stacks up against what you actually need.
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Check your scoreA £200,000 pension pot is a solid foundation. Through drawdown it provides around £8,000/year, and with the state pension you'd have roughly £19,502/year — approaching the PLSA "moderate" standard.
Whether this is "enough" depends entirely on what retirement looks like for you. For someone with a paid-off mortgage, modest expectations, and the full state pension, £200,000 can work. For someone who wants regular holidays, a newer car, and financial breathing room, you'd want to keep building.
At this level, how you draw down matters almost as much as how much you have. Taking too much too early is the biggest risk. A sustainable withdrawal rate of 3.5–4% preserves your pot through a 25–30 year retirement; 5–6% starts to create real depletion risk, especially if markets dip early.
- •Drawdown income uses the 4% rule (withdrawing 4% of your pot per year). Actual sustainable withdrawal rates depend on investment returns, fees, and how long you live.
- •Annuity rates are illustrative market averages and will vary by provider, health, and annuity type. Get multiple quotes before buying.
- •State pension (£11,502/yr) assumes a full 35-year National Insurance record. Your entitlement may differ — check at gov.uk.
- •Target pots use the PLSA Retirement Living Standards (2024/25 single-person figures) and assume retirement at 67 lasting to age 87.
- •All figures are in nominal terms and do not account for inflation. The purchasing power of your pot will be lower in future years.
- •This is general information, not personal financial advice. For personalised guidance speak to an FCA-regulated financial adviser.
This calculator provides estimates based on 2025/26 tax rates and is not financial advice. Scottish taxpayers are subject to different income tax rates and bands. The calculations assume your salary is your only source of income and do not account for benefits in kind or other taxable income.
For personalised guidance on your pension contributions, speak to an FCA-regulated financial adviser. You can find one via Unbiased or VouchedFor.