A duration question needs a year-by-year view
If you withdraw the same amount every year, the answer looks simple. Real retirement rarely works like that. Spending can change, State Pension may start later, investment returns vary, and tax depends on the source of income.
Illustrative withdrawal examples
These are simple fictional examples, not guarantees. Withdrawing £20,000 a year asks much less of a £500,000 pot than withdrawing £40,000 a year. If State Pension later covers part of spending, withdrawals may fall. If markets are weak early on, the pot may be under more pressure.
- £20,000 a year may be a top-up income for some households.
- £30,000 a year may need more support from State Pension later.
- £40,000 a year may be highly sensitive to age and returns.
State Pension can change the later years
A pot might fund higher withdrawals before State Pension starts and lower withdrawals afterwards. That is why “how long will it last?” should include your State Pension forecast and start age, not just a pot divided by annual spending.
What the calculator tests
RetirementInSight projects each year in today's money and tests conservative, base and optimistic return scenarios. It does not promise a certain result, but it can show where a £500,000 plan becomes tight.
Common questions
Can I use a simple 4% rule for £500,000?
Rules of thumb can provide context, but they do not account for your exact tax, State Pension timing, spending pattern or asset access.
Does £500,000 last longer if I retire later?
Usually it can, because there are fewer years to fund and later guaranteed income may start sooner, but spending still drives the result.
Related reading
Can I retire with £500k?
The cornerstone page for the broader feasibility question.
How much income will £500k provide?
A separate income-focused view of the same pot size.
What if investments perform badly?
Understand why weak early returns can change how long a pot lasts.
How to stress-test your retirement plan
Test weaker returns, higher spending and timing changes.
Sources and last reviewed
Page reviewed 2026-08-21. Source links below show when each reference was last checked.
- Check your State Pension forecast (GOV.UK, last checked 2026-08-20)
- Check your State Pension age (GOV.UK, last checked 2026-08-20)
- Retirement Living Standards 2026 update (Pensions UK / Retirement Living Standards, last checked 2026-08-18)
- Income Tax rates and Personal Allowances (GOV.UK / HMRC, last checked 2026-08-19)
- Tax when you get a pension (GOV.UK / HMRC, last checked 2026-08-20)