Drawdown risk calculator
Will your drawdown client run out of money if they opt for a flexible income through drawdown? Our drawdown risk calculator can help demonstrate how likely they are to outlive their income.
Using the tool
- Add your client's total pension fund after the deduction of any tax free and taxable lump sums.
- The tool will compare the guaranteed lifetime income they could secure (based on whether they're in excellent, reasonable, challenging or critical health) with the same level of income drawn on a flexible basis through drawdown.
- You can change the amount of income your client decides to take from drawdown, the assumptions around where the money is invested and the level of fund management.
- You can also change the product and adviser charges being taken.
It will then determine the risk of your client running out of money at some point during retirement if they decide to go into drawdown. This will be based on their specific income requirements, where the money is invested and the charges being taken.
The tool makes a number of assumptions in respect of gender, retirement age, current health, pension fund and monthly drawdown income requirement. These will vary on the basis of your inputs so we recommend that you familiarise yourself with the full list of assumptions at the foot of the tool.
Figures are for illustrative purposes only.
You can find out more about the Drawdown Risk Calculator by contacting us.
Please note that summaries can be printed and given to your clients.
Once your client has a better understanding of the risk, they can start to consider their options for their retirement income. We offer a range of tools and calculators to help them make informed decisions