How long will a £100,000 pension pot last — the six-figure drawdown question.
How long does a £100,000 pension pot last in retirement? See sustainable withdrawal rates, the 4% rule, and combined income with the state pension.
£100,000 produces £4,000/year of sustainable income at the 4% rule — combined with the full state pension of £11,502, that's around £15,500/year before tax. The PLSA Retirement Living Standards classifies £14,400/year as a 'minimum' retirement (covering essentials) and £31,300/year as 'moderate'. So £100k plus state pension is just enough for a basic but secure retirement. The bigger question for £100k pots is what happens if you want to retire before state pension age. Drawing £8-10k/year from £100k typically lasts around 14 years at moderate growth, which can comfortably bridge a retirement at 60 through to the state pension kicking in at 67.