Pension Calculator
Retirement Planning Calculator
Projected Pension Pot
£387k
Years to Retirement
32
Monthly Income from Pot (4% rule)
£1,289
+ State Pension (monthly)
£959
Total Monthly Retirement Income
£2,248
Shortfall Alert
To reach your target of £30,000/year, you need an additional £197/month
Pension Growth Projection
Assumes 5% annual return. Actual returns may vary. Past performance is not indicative of future results.
Calculator Methodology
Based on 2026/27 UK state pension of £221.20/week (£11,502/year). Uses 4% safe withdrawal rate for retirement income. Annual allowance is £60,000. State pension age rises to 67 by 2028 and 68 by 2046. Results are for illustrative purposes only and do not constitute financial advice. Last verified: June 2026.
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Understanding UK Pension Planning
Discover how pension contributions grow over time, state pension basics, and how to plan for a comfortable retirement.
How Much Should You Save for Retirement?
A commonly cited rule of thumb is to save around 15% of your gross income towards retirement, including any employer contribution. If you start later in life, that percentage needs to rise significantly — someone starting at 45 may need to save 25–30% of income to reach the same pot as someone who started at 25 saving 10%.
The calculator above uses the 4% safe withdrawal rule to estimate sustainable annual income from your pot: withdrawing roughly 4% per year is historically unlikely to deplete a diversified portfolio over a 25–30 year retirement.
UK Workplace Pensions and Auto-Enrolment
| Contribution | Minimum Rate | Notes |
|---|---|---|
| Employee minimum | 5% of qualifying earnings | Includes tax relief |
| Employer minimum | 3% of qualifying earnings | Many employers match higher |
| Total minimum | 8% combined | Statutory auto-enrolment floor |
Most UK employees are automatically enrolled into a workplace pension if aged 22+ and earning over £10,000/year — you can opt out but lose the employer contribution if you do.
State Pension vs Personal/Workplace Pension
The UK State Pension is a flat weekly amount funded through National Insurance contributions, separate from any workplace or personal pension pot. You need 35 qualifying years of NI contributions to receive the full amount — fewer years means a proportionally reduced payment.
State Pension
Funded by National Insurance. Flat rate regardless of earnings. Age currently 66, rising to 67 by 2028.
Workplace/Personal Pension
Built from your own and employer contributions, invested and grown over time. Amount depends entirely on how much you save and market returns.
Closing the Retirement Shortfall
If the calculator shows a shortfall against your target income, the three main levers to close the gap are: increasing your monthly contribution, retiring later to give your pot more time to grow, or adjusting your expected investment return by reviewing your fund's asset allocation with a financial adviser. Small increases made early tend to have an outsized effect thanks to compounding.
⚠️ Important Disclaimer
This calculator provides illustrative projections only and does not constitute financial or pension advice. Actual pension growth depends on fund performance, charges, and inflation. State Pension entitlement depends on your individual National Insurance record — check your forecast on GOV.UK. Always consult a qualified, FCA-regulated financial adviser before making retirement decisions. Figures verified against published state pension and contribution limits as of June 2026.
100% private — your figures are calculated in your browser and never stored or shared.
Frequently Asked Questions
What is the state pension age?
State pension age is currently 66, rising to 67 by 2028 and 68 by 2046. Check your personal state pension age on GOV.UK.
How much is the full state pension?
The full new state pension for 2026/27 is £221.20 per week (£11,502 per year). You need 35 qualifying years of NI contributions for the full amount.
What is the annual allowance?
The annual allowance is £60,000 for 2026/27. Contributions above this may be taxed. High earners may have a tapered allowance.
How much should I save for retirement?
A common rule is 15% of gross income (including employer contributions). Some experts suggest saving enough to replace 70-80% of pre-retirement income.
Key Terms Explained
Plain-English definitions of the financial terms used in this calculator.
- Compound Interest
- Interest earned on both your original money and on interest already added. Over long periods compounding accelerates growth dramatically — the earlier you start saving or investing, the more it works in your favour.
- Personal Allowance
- The amount of income you can earn each tax year before paying income tax — £12,570 for most people in the UK. It is reduced by £1 for every £2 earned above £100,000.
- Inflation
- The rate at which prices rise over time, eroding the buying power of money. If inflation is 3%, £100 today buys only about £97 worth of goods next year — which is why long-term savings need to beat inflation.
- Pension Contribution
- Money paid into a pension by you and your employer. Contributions get tax relief at your marginal rate, and under auto-enrolment a minimum of 8% of qualifying earnings goes in (at least 3% from your employer).
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Not Financial Advice: This calculator is for informational and educational purposes only. Results are estimates and do not constitute financial advice, recommendations, or regulated advice. We are not authorised or regulated by the Financial Conduct Authority (FCA). Always consult a qualified financial adviser for personalised advice. Tax treatment depends on your individual circumstances and may change. Tax laws and rates may change. Past performance does not guarantee future results.
