How long will a £400,000 pension pot last — sustainable income for life.
How long does a £400,000 pension pot last in drawdown? Model the 4% rule, sustainable withdrawal rates, and the impact of fees and market returns.
£400,000 produces £16,000/year at the 4% safe withdrawal rate. Combined with the full state pension of £11,502, that's around £27,500/year — comfortably approaching the PLSA 'moderate' retirement band of £31,300/year for an individual. At this pot size most simulations show the pot lasting indefinitely at the 4% rate, meaning your drawdown can outlast you with money to spare. The interesting question becomes how much you can sustainably draw above 4%. Many people overestimate sustainable rates: 5% works most of the time but adds material risk of running out by year 25; 6% rarely lasts 30 years without good fortune. The 'safe withdrawal rate' literature is mostly US-based and assumes a 30-year retirement; UK retirees increasingly need to plan for 35-40 years.