Increased cost of living may cause those in retirement to withdraw more of their pension savings each year than originally planned. Savers who draw down a larger income from their pension run the risk of exhausting their pension fund, depending on their pension’s growth rate. The table below shows how a £200,000 pension fund could last 28 years if £12,000 was withdrawn, or 15 years £18,000 a year is withdrawn. (Figures assume 4% growth rate)
|How long will a £200,000 pension fund last?
|Annual growth rate||Number of years before pension runs out