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Pension Calculator UK

Estimate your pension pot at retirement and see how much monthly income it could provide. Adjust contributions, growth rates, and inflation to explore different scenarios.

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Enter your details and click calculate to see your pension projection.

How This Pension Calculator Works

This calculator projects the future value of your pension pot using compound interest. It takes your current pension savings, adds your monthly contributions (including any employer match), and applies annual investment growth over the years until your chosen retirement age.

The default growth rate of 5% represents a typical balanced pension fund before fees. If you enable inflation adjustment (2.5% per year), the result is shown in today's money — giving you a more realistic picture of what your pot would actually buy in retirement.

The monthly income estimate uses the 4% drawdown rule, a widely cited guideline suggesting you can withdraw 4% of your pension pot each year with a low risk of running out of money over a 30-year retirement. This is a simplification — actual sustainable withdrawal rates depend on investment mix, fees, and market conditions.

How Much Should I Pay Into My Pension?

A common rule of thumb is to contribute half your age as a percentage of your salary. If you start saving at 30, aim to put away at least 15% of your income (including employer contributions). The earlier you start, the less you need to contribute — thanks to compound growth doing the heavy lifting.

Under auto-enrolment, the minimum total contribution is 8% of qualifying earnings (5% from you, 3% from your employer). Many people will need to contribute more than this to achieve a comfortable retirement.

UK Pension Allowances and Limits

The annual pension allowance is currently £60,000 (2024/25 tax year). This is the maximum you can contribute to pensions each year while receiving tax relief. If you earn over £260,000, your allowance is tapered — reduced by £1 for every £2 of adjusted income above £260,000, down to a minimum of £10,000.

The lifetime allowance was abolished in April 2024. There is no longer a cap on the total value of pension savings you can accumulate, although the tax-free lump sum you can take at retirement is capped at £268,275.

FAQ
How much pension do I need to retire comfortably in the UK?
The Pensions and Lifetime Savings Association (PLSA) publishes Retirement Living Standards. For a single person: a "minimum" retirement requires roughly £14,400/year, a "moderate" retirement around £31,300/year, and a "comfortable" retirement approximately £43,100/year (2024 figures). These include the full state pension of £11,502/year.
What is the current UK state pension amount?
The full new state pension is £230.25 per week (£11,973/year) for the 2025/26 tax year. To receive the full amount, you need 35 qualifying years of National Insurance contributions. You need at least 10 qualifying years to get any state pension at all. This calculator does not include state pension in its projections — it focuses solely on your private/workplace pension savings.
What growth rate should I use?
A 5% nominal growth rate is a reasonable mid-range assumption for a balanced pension fund (typically 60% equities, 40% bonds). Conservative investors might use 3-4%, while those with a higher equity allocation might use 6-7%. The FCA's standardised growth rates for projections are 2%, 5%, and 8%. Remember that past performance does not guarantee future results, and actual returns will vary year to year.
Should I adjust for inflation?
Yes — we recommend keeping inflation adjustment enabled. Without it, the projected pot looks larger but is misleading. £500,000 in 30 years will buy significantly less than £500,000 today. With the inflation toggle on, the calculator shows your pot in today's purchasing power, which is much more useful for planning.
Can I take 25% of my pension tax-free?
Yes. From age 55 (rising to 57 in 2028), you can take up to 25% of your pension as a tax-free lump sum, up to a maximum of £268,275. The remaining 75% is taxed as income when you withdraw it. This calculator shows the total pot value — you can mentally divide by 4 to estimate your tax-free cash entitlement.
What is the difference between a defined benefit and defined contribution pension?
A defined contribution (DC) pension — the most common type — builds up a pot of money that depends on how much is contributed and how investments perform. This calculator is designed for DC pensions. A defined benefit (DB) pension — sometimes called a "final salary" pension — pays a guaranteed income based on your salary and years of service. If you have a DB pension, this calculator is not suitable for estimating your retirement income.
Should I consolidate multiple pension pots?
Combining multiple pension pots can simplify management and sometimes reduce fees. However, you may lose valuable benefits such as guaranteed annuity rates, lower exit charges, or protected tax-free cash. Before consolidating, add up all your pots and enter the total as your "current pension pot" in this calculator. If any individual pot is worth £30,000 or more and has safeguarded benefits, you are legally required to take financial advice before transferring it.
Is it worth paying a financial adviser for pension advice?
Research suggests it can be. A 2025 Vanguard study found that 86% of advised clients experienced greater financial peace of mind, and a Standard Life study found that advised pension clients accumulated £30,000–£40,000 more over 10 years than non-advised clients with similar profiles. A pension adviser can optimise your contribution strategy, tax relief, and investment allocation in ways that a calculator cannot.

Want personalised pension advice?

A pension specialist can review your current arrangements, advise on contribution levels, and help you plan for the retirement income you want. Find an FCA-authorised adviser near you.

Find a Pension Adviser

This calculator is for illustration purposes only and does not constitute financial advice. Projections are based on the assumptions you provide and are not guaranteed. Past performance does not guarantee future results. The 4% drawdown rule is a general guideline and may not be suitable for all circumstances. Tax treatment depends on individual circumstances and may change. The annual pension allowance is currently £60,000 (2024/25). approval.co.uk is not authorised by the FCA and does not provide financial advice. Always consult a qualified pension adviser before making decisions about your retirement savings.