What this calculator does
This tool helps you compare annuity and drawdown income side by side, using your own pot size and a set of chosen assumptions, so you can see roughly how the same pension pot could translate into very different income patterns depending on the route you take.
Why compare scenarios before you decide
Choosing how to access your pension is one of the most consequential — and often one of the least reversible — decisions you'll make in retirement. Buying an annuity is generally permanent once the cooling-off period ends, and even flexi-access drawdown involves decisions, like how much to crystallise and how much to withdraw, that are hard to undo cleanly once set in motion. Seeing both routes laid out side by side, using the same starting pot size, makes the trade-off much easier to grasp: an annuity trades flexibility for a guaranteed income, while drawdown trades certainty for control and the potential for growth. Comparing illustrative figures for both, before you commit to either, is one of the simplest ways to approach the decision with clearer eyes.
Because every provider's annuity rates and every drawdown assumption will differ from the illustrative figures a calculator like this produces, treat any result as a starting point for further research and conversation, not a personalised recommendation. For a decision of this size, it's well worth getting quotes from several annuity providers, reviewing the fees and fund choices in any drawdown arrangement you're considering, and speaking to a regulated financial adviser or MoneyHelper before making a final choice.
This calculator produces illustrative figures for general guidance only, not personalised financial advice. For a full walkthrough of the standalone version of this tool, visit our pension income calculator in the tools section.