Pension Calculator
Our pension calculator projects your retirement pot based on your current savings, planned contributions, expected investment growth, and target retirement age. It shows the monthly income your pension could provide and helps you identify any shortfall against your retirement goals — giving you time to act before it is too late.
Pension Calculator
Project your pension pot and retirement income based on your contributions for 2026/27.
Projected values are estimates. Investment returns are not guaranteed. Always seek regulated financial advice for pension decisions.
How Much Do You Need to Retire?
The Pensions and Lifetime Savings Association (PLSA) publishes annual Retirement Living Standards for the UK. In 2026, a moderate retirement — covering all needs with some financial security and flexibility — requires approximately £31,300 per year for a single person and £43,100 for a couple. A comfortable retirement with regular holidays and a new car every five years costs around £43,100 single or £59,000 as a couple.
The new State Pension provides £12,547.60 per year (£241.30 per week) in 2026/27 for those with 35 qualifying National Insurance years. This covers a significant portion of a minimum retirement income, but leaves a substantial gap against moderate and comfortable standards — a gap your private pension must fill.
How Pension Contributions Grow
Pension contributions benefit from compound investment growth over time and from tax relief. Every £80 you contribute from net pay becomes £100 in your pension pot through basic rate tax relief — higher rate taxpayers reclaim an additional 20% through self-assessment. If your employer matches contributions, the effective cost per pound in your pension falls further.
At a modest real investment growth rate of 4% per year, contributing £300 per month from age 30 to age 67 would accumulate a pot of approximately £340,000. At 6% growth the same contributions produce around £530,000. The difference between starting at 30 versus 40 is dramatic — delaying by 10 years roughly halves the pot size for the same monthly contribution.
Auto-Enrolment Minimum Rates 2026/27
Under auto-enrolment, the minimum total contribution is 8% of qualifying earnings (between £6,240 and £50,270). Employers must contribute at least 3%, with employees making up the remaining 5%. Many employers offer enhanced matching — for example, doubling employee contributions up to 5% — which is effectively free money that should be maximised before paying into any other savings vehicle.
Frequently Asked Questions
The minimum pension access age is currently 57 from 2028 (raised from 55). The State Pension age is 66 for both men and women, rising to 67 between 2026 and 2028. Defined benefit (final salary) schemes may have different normal retirement ages specified in the scheme rules.
The Lifetime Allowance was abolished from April 2024. Previously it capped pension pots at £1,073,100 before punitive tax charges applied. New lump sum allowances replace it — the Lump Sum Allowance of £268,275 and the Lump Sum and Death Benefit Allowance of £1,073,100 cap tax-free withdrawals rather than total pot size.
Pensions offer upfront tax relief that ISAs do not, making them superior for higher rate taxpayers. However, pensions are locked until age 57, whereas ISA funds are accessible at any time. Most financial planners recommend maximising pension contributions first (especially employer matching), then using an ISA for accessible savings. Our ISA Calculator shows long-term ISA growth alongside pension projections.
The government’s free Pension Tracing Service at gov.uk can locate pension schemes from previous employers using the employer name. The Association of British Insurers also provides a pension finder service. Combining old pensions into a single pot can reduce charges and simplify management.
A Self-Invested Personal Pension (SIPP) gives you direct control over your investment choices within the pension wrapper. Unlike employer schemes, a SIPP can hold a wide range of assets including shares, funds, bonds, and commercial property. Tax relief applies in the same way. SIPPs are particularly popular with self-employed workers who have no access to employer schemes. Use our Salary Sacrifice Calculator to compare the tax efficiency of employer versus personal contributions.
Enter your salary, current age, and target retirement age. Add your own contribution percentage and your employer’s. The calculator projects your pension pot using the assumed annual growth rate — 4% after inflation is a moderate long-term assumption for a balanced fund. Actual returns vary with market conditions and investment allocation. Higher equity exposure historically produces higher long-term returns but with more volatility. The State Pension figure (£12,547.60 for 2026/27) assumes a full qualifying record. Check your State Pension forecast at gov.uk/check-state-pension — NI gaps can reduce entitlement and may be worth filling voluntarily. The projected annuity income uses an indicative rate; many retirees now use income drawdown rather than a fixed annuity. Always take regulated advice before pension decisions.
Important Information
This calculator is provided for general information and planning purposes only. It does not constitute financial or tax advice and should not be relied upon as such. Figures are indicative estimates based on simplified, publicly available criteria and stated assumptions. Actual results depend on your full circumstances. See our Disclaimer for further information.