UK Pension Calculator
Project your pension pot at retirement and estimate your income.
Projected Pension Pot
Pot at retirement
£0
Contributions Breakdown
Your total contributions
£0
Employer total contributions
£0
Total investment growth
£0
Estimated Retirement Income (4% Drawdown)
Annual income
£0
Monthly income
£0
Year-by-Year Pension Growth
How Pension Growth Works
Your pension pot grows through two forces: regular contributions (yours and your employer's) and compound investment returns. The longer your money is invested, the more powerful compounding becomes.
The Power of Compound Growth
Future Value = Present Value x (1 + net growth rate) ^ years
Each year, your pot grows by the net growth rate (your expected growth minus the management charge). Growth in year one earns its own growth in year two, and so on. Starting early makes a dramatic difference because of this compounding effect.
Net Growth Rate
Net growth = Expected growth rate - Annual management charge
If your expected return is 5% and your provider charges 0.75%, your net growth rate is 4.25%. Over decades, even small differences in charges have a significant impact on your final pot. A 0.5% higher charge on a pot growing for 30 years can cost tens of thousands of pounds.
The 4% Drawdown Rule
The 4% rule suggests withdrawing 4% of your pot in the first year of retirement, then adjusting that amount for inflation each year. Research suggests this approach gives a high probability of your money lasting at least 30 years. It is a guideline, not a guarantee, and your actual sustainable withdrawal rate depends on market conditions and how long you need the money to last.
What This Calculator Does Not Include
This projection does not account for the State Pension (currently worth up to around 11,500 per year), salary increases over time, tax relief on contributions, inflation eroding purchasing power, or the 25% tax-free lump sum you can take at retirement. Treat the figures as a useful guide rather than a precise forecast.
Pension FAQs
What is the UK State Pension age?
The current UK State Pension age is 66. It is rising to 67 between 2026 and 2028, and is scheduled to increase to 68 between 2044 and 2046. Your personal State Pension age depends on your date of birth.
Has the Lifetime Allowance been abolished?
Yes. The pension Lifetime Allowance (LTA) was abolished from 6 April 2024. There is no longer a cap on the total amount you can hold in pension savings without incurring a tax charge. The annual allowance of £60,000 still applies to how much you can contribute each year.
What is auto-enrolment and how much do I have to contribute?
Auto-enrolment requires UK employers to enrol eligible workers into a workplace pension. The minimum total contribution is 8% of qualifying earnings, with at least 3% from the employer and 5% from the employee. You can opt out, but you would lose the employer contribution.
What is the 4% drawdown rule?
The 4% rule is a guideline suggesting you can withdraw 4% of your pension pot in the first year of retirement, then adjust for inflation each year, with a reasonable expectation that your money will last at least 30 years. It originated from US research (the Trinity Study) and is a rough benchmark, not a guarantee.
How much should I have in my pension by age 40?
A common rule of thumb is to have roughly twice your annual salary saved in your pension by age 40. For someone earning £35,000, that would be around £70,000. However, the right amount depends on your target retirement age, desired income, other savings, and whether you have a defined benefit pension.