The aim of the calculator is to help you understand whether your investments and the income generated from them, might last for as long as you think you will need them.
The calculator works by using the information you have entered for your age, gender and investment amount. It then forecasts annual increases in your annual income withdrawal and calculates the sustainability of the annual income withdrawal against three assumed investment growth scenarios:
- Poor market conditions
- Average market conditions
- Good market conditions
The results will show an estimate of how long your investment amount might last, in whole years for each of the three growth scenarios. The amount of withdrawal can be changed so that you can model different levels of withdrawal to see how long any income might be able to be paid for.
The calculator can only use the information that you enter and will not take into account any additional retirement savings you may have that you do not enter. The tool is based on Fidelity’s current understanding of UK pension legislation which is subject to change.
You should note that as assumptions have been used in this tool, they may not accurately reflect your personal situation.
The results displayed in this tool are not intended to be considered as investment advice or a personal recommendation regarding your retirement planning based on your personal situation. You should not rely on the tool to make your retirement planning decisions. We recommend that you should seek financial advice if you require more detailed help and information with your retirement planning.
This calculator assumes a broad mix of investments which may not be right for you. When choosing your own investments, they may perform worse or better than the results portrayed in the calculator.
Market growth rates
The market growth rates have been calculated from performing 10,000 simulations of market returns and ordering these scenarios from best to worst.
- The result for average market conditions shows what the middle scenario could have achieved.
- The result for poor market conditions shows what could happen in the bottom 5% of these scenarios. This means that there would be a 1 in 20 chance that your money will run out sooner than shown.
- The result for good market conditions shows what might happen in the top 5% of these scenarios. You should not rely on markets doing this well.
The growth rates used by this calculator are based on Fidelity’s assumptions about how markets might perform in the future. Whilst these assumptions are informed by historical experience, which cannot provide an accurate view of future results, they involve an element of subjective judgement and are therefore hypothetical in nature. The growth rates shown are not guaranteed and actual market growth rates could be lower or higher than those indicated in the calculator.
The annual income shown by the calculator, that can be amended by using the slider bar, is based on a gross withdrawal (before income tax has been deducted). Most people will have to pay income tax on the income taken from their retirement savings. The calculator assumes that this annual income will increase by 2% each year.
We use the gender and current age information that you input on the tool to compare against mortality data as provided by the UK Actuarial Profession’s Continuous Mortality Investigation to estimate your life expectancy. You should consider that you may live to a higher or lower age than that indicated. Results assume you are in good health.
We might store information entered in tools, such as calculators or demonstrations on our website. This information may need to be temporarily stored to deliver these types of services efficiently and is not used for any other means.