How long will a £1,000,000 pension pot last — seven figures, six considerations.

A £1 million pension produces £40,000/year at the 4% safe withdrawal rate — well above the PLSA 'moderate' retirement standard of £31,300. Combined with the full state pension's £11,502 the household income approaches £52,000/year before tax. For most retirees this pot will last indefinitely on a sustainable drawdown plan; the question shifts entirely to tax optimisation. The £268,275 lump sum allowance caps the tax-free cash you can take at 25% of the pot, leaving £750,000+ subject to income tax on drawdown. Spreading drawdown across years to avoid pushing into higher rate (40%) or additional rate (45%) is worth tens of thousands in tax savings over a 25-year retirement. This is the pot size at which dedicated retirement income advice almost always pays for itself.