Skip to content
English
Go to www.timelineapp.co
  • There are no suggestions because the search field is empty.

Understanding Account Withdrawal Order in Timeline Planning | Timeline Help Centre

Summary

  • The Account Withdrawal Order determines how funds are drawn across a client’s accounts.
  • It works alongside the total annual withdrawal amount to define exact withdrawals per account.
  • Supports both proportional (even) and bespoke (ordered) withdrawal strategies.
  • Plays a critical role in tax efficiency and retirement sustainability.
  • Timeline Planning provides flexible modelling to reflect real-world withdrawal approaches.

Description

The Account Withdrawal Order is a key lever in retirement planning within Timeline Planning. It defines where money comes from when a client needs to fund their spending. This makes it essential for both cashflow accuracy and tax optimisation.

When a withdrawal is required, Timeline doesn’t just deduct a lump sum arbitrarily. Instead, it:

  1. Takes the total required withdrawal for the year
  2. Applies the defined withdrawal order
  3. Allocates withdrawals across accounts accordingly

This enables advisors to model strategies aligned with real-world financial planning principles—such as:

  • Drawing down taxable accounts first
  • Deferring pensions for tax efficiency
  • Managing sequencing risk across investment portfolios

From a product perspective, this feature unlocks strategy simulation, not just forecasting—aligning strongly with Jobs to Be Done: helping clients answer “What’s the most efficient way to fund my lifestyle?”

How to Choose the Withdrawal Order

To configure this:

  • Navigate to Settings → Plan Settings
  • Select your preferred withdrawal sequence

Timeline supports flexible configurations, including:

  • Even (proportional) withdrawals across accounts
  • Sequential (bespoke) withdrawals based on priority

This flexibility allows you to model everything from simple strategies to highly tailored drawdown plans.

Example

Example 1: Even (Proportional) Withdrawal

John has:

  • £100,000 in Account A
  • £200,000 in Account B
  • Total: £300,000

This results in:

  • Account A: 33.33%
  • Account B: 66.67%

 

If John withdraws £150,000:

  • £50,000 comes from Account A
  • £100,000 comes from Account B

This approach maintains proportional exposure across accounts—useful for risk balancing.

Example 2: Bespoke (Sequential) Withdrawal

John chooses to:

  1. Withdraw from Account A first
  2. Then use Account B

For a £150,000 withdrawal:

  • £100,000 is taken from Account A (fully depleted)
  • £50,000 is taken from Account B

Edge Case (Market Movement)
 If Account A falls to £94,900 due to negative returns:

  • £94,900 is withdrawn from Account A
  • £55,100 is taken from Account B

This highlights an important planning reality:
👉 Withdrawal strategies must account for market variability and sequencing risk.

Conclusion

The Account Withdrawal Order is more than a configuration setting—it’s a strategic tool.

By enabling both proportional and bespoke withdrawal approaches, Timeline Planning allows advisors to:

  • Optimise tax outcomes
  • Manage investment risk
  • Improve retirement sustainability
  • Create transparent, client-friendly strategies

Used effectively, it transforms withdrawal planning from a static assumption into a dynamic, optimised decision-making process—helping clients achieve more predictable and efficient financial outcomes.