How long will a £250,000 pension pot last — a quarter-million question.
How long does a £250,000 pension pot last in drawdown? Model sustainable income, the 4% rule, and the impact of fees on retirement length.
£250,000 produces £10,000/year at the 4% safe withdrawal rate. Combined with the full state pension's £11,502, that's £21,500/year — close to the PLSA 'moderate' retirement standard of £31,300/year if you also have some other income or a partner with their own state pension. The pot easily sustains a 30-year retirement at this withdrawal rate based on most historical simulations. The interesting flexibility at this pot size is that you can retire several years before state pension age while still drawing meaningfully more than the eventual sustainable rate — the pot acts as both a bridge and an income supplement. The £268,275 lump sum allowance also becomes relevant here: you can take 25% of the pot (£62,500) tax-free up front.