Annuity vs Drawdown Calculator
Compare a guaranteed annuity income with drawing the same income from an invested pot.
Quick answer
An annuity pays a fixed income that does not depend on markets, while drawdown keeps the pot invested and withdraws the same yearly income. The balance grows at the return less withdrawals, and the age it runs out is reported.
Annuity vs Drawdown Calculator
Steady return after fees. Real markets vary.
Annual Income (both options)
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Income Over the Period
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Drawdown Pot Runs Out At
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Drawdown Legacy at End
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Return Needed to Last the Period
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Annuity Legacy at End
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Year-by-Year Comparison
| Age | Drawdown balance (₹) | Drawdown paid (₹) | Drawdown total (₹) | Annuity total (₹) |
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Assumptions & method
- Annual income = pot × annuity rate. The annuity pays this fixed amount every year for life and leaves no legacy (no death benefit or guarantee period is assumed).
- Drawdown: at the start of each year the same income is withdrawn, then the remaining balance grows by the annual return. Balance after a year = (balance − income) × (1 + return).
- When the balance is less than one full year's income, the pot is treated as running out; the age is the start age + whole years + balance ÷ income.
- Return needed to last = the steady annual return at which the pot is exactly zero after the compared years, found numerically.
- Income is level; there is no inflation adjustment. Taxes, fees, volatility, joint-life or inflation-linked annuity options and the value of longevity insurance are not included.
Results are estimates based on the figures you enter. They are not guarantees and not financial advice.
Guaranteed income or flexible drawdown
Turning a pot into retirement income is a trade-off between certainty and flexibility. An annuity pays a fixed income that does not depend on markets or how long you live, but the pot is usually gone. Drawdown leaves the money invested, so it can grow and be passed on, but it can also run out. This calculator pays the same yearly income both ways, tracks the drawdown balance year by year, shows the age at which the pot would be exhausted, the legacy left at your horizon, and the return needed to last.