Compare Drawdown and Traditional Annuity Income

Drawdown appears to offer more income than traditional annuities but this is not without risk (article explaining risk in more detail). Several factors can make pension drawdown poor value; mortality drag, poor investment returns, charges and future changes to annuity rates.

This calculator shows the maximum income from drawdown (using 15th November GAD rates) and the potential income available from a traditional annuity. Income is plotted over time to show either annual or accumulated amounts. Since drawdown is affected by investment performance, see what happens when you change the pension growth rate (negative returns can be used).