Pension Calculator
Estimate your UK pension pot at retirement. Calculate workplace pension growth with employer contributions, tax relief, and compound interest projections.
UK workplace pensions under auto-enrolment require a total minimum of 8% of qualifying earnings (at least 5% from the employee including tax relief and 3% from the employer). Contributions normally get income tax relief at your marginal rate, delivered as Relief at Source, Net Pay, or Salary Sacrifice depending on your scheme. The 2026/27 annual allowance is £60,000; the Lifetime Allowance was abolished from 6 April 2024 and replaced with allowances on lump sums and overseas transfers.
Enter your age, salary, and contributions for a retirement projection.
Pension Calculator
Auto-enrolment minimum: 5%
Auto-enrolment minimum: 3%
How this calculator models contributions: it treats your entered employee contribution percentage as a before-relief / net-cost style amount, then grosses it up using the selected tax-relief rate. For 40% and 45% relief, it assumes the extra relief above basic rate is reclaimed (for example via Self Assessment) and effectively added back into the pension model. Net Pay and Salary Sacrifice schemes work differently, and salary sacrifice can also reduce employee Class 1 National Insurance. Use your provider or payroll figures for exact scheme-specific results.
Typical assumption: 4-6% after fees. Past performance doesn't guarantee future results.
£440,500
Total pension pot
£110,125
Tax-free lump sum (25%)
£13,215
Annual income (4% rule)
£1,101
Monthly income (4% rule)
Pot Breakdown
Growth Milestones
| Age | Pension Pot | You Paid In | Growth |
|---|---|---|---|
| 35 | £37,598 | £29,000 | £8,598 |
| 40 | £66,599 | £43,000 | £23,599 |
| 45 | £103,818 | £57,000 | £46,818 |
| 50 | £151,583 | £71,000 | £80,583 |
| 55 | £212,883 | £85,000 | £127,883 |
| 60 | £291,553 | £99,000 | £192,553 |
| 65 | £392,514 | £113,000 | £279,514 |
| 67 | £440,500 | £118,600 | £321,900 |
State Pension (not included above)
The full new State Pension is £241.30 per week, about £12,548 per year for 2026/27, with 35 qualifying NI years required for the full amount. If you qualify in full, your total retirement income would be approximately £25,763/year (£2,147/month) including State Pension.
This projection assumes a constant growth rate and a simplified Relief at Source style gross-up on your contribution. It does not model inflation, salary growth, provider fees, fund risk, market volatility, the tapered annual allowance, the Money Purchase Annual Allowance, drawdown tax, defined-benefit benefits, or salary-sacrifice mechanics. The 4% drawdown shown is a rough rule of thumb, not a guarantee or a UK regulatory benchmark. Real outcomes may vary significantly. Consider speaking to a regulated financial adviser for personalised pension advice.
General information only. This calculator and the guidance below are not pension, tax, legal, financial, accounting, payroll, or investment advice. Pension rules, tax relief, the State Pension, the annual allowance, the Money Purchase Annual Allowance, and access-age rules can change. Verify your specific situation with GOV.UK, HMRC, The Pensions Regulator, your pension provider, or a qualified financial adviser or tax adviser before relying on any figure for contribution, retirement, or transfer decisions.
How UK Pensions Actually Work
A pension is a long-term savings account with two notable advantages over most other savings vehicles: your employer normally pays in alongside you, and the government usually adds tax relief on every pound you contribute. For a basic-rate taxpayer in a Relief at Source workplace scheme, the headline maths is roughly £1 in your pension for every 80p the contribution costs you, plus whatever your employer adds.
There are two main types. A defined contribution (DC) pension, which is what most people have now, builds up a pot that depends on how much you and your employer pay in and how investments perform. A defined benefit (DB) pension, increasingly rare outside the public sector, promises an income based on your salary and years of service, with rules set by the scheme.
Since auto-enrolment started in 2012, every employer must offer a workplace pension. The total minimum contribution is generally 8% of qualifying earnings, with at least 5% from you (including tax relief) and 3% from your employer. Many financial educators use 12% to 15% (including employer contributions) as a rough target for a more comfortable retirement, though the right figure depends on your circumstances, scheme, and goals.
Tax Relief on Pension Contributions
| Tax Band | Income Range (2026/27) | Relief Rate | £100 Costs You | Effective Boost |
|---|---|---|---|---|
| Basic rate (rest of UK) | £12,571 to £50,270 | 20% | £80 | +25% |
| Higher rate (rest of UK) | £50,271 to £125,140 | 40% | £60 | +67% |
| Additional rate (rest of UK) | Over £125,140 | 45% | £55 | +82% |
| Scottish starter | £12,571 to £16,537 | 19% | £81 | +23% |
| Scottish basic | £16,538 to £29,526 | 20% | £80 | +25% |
| Scottish intermediate | £29,527 to £43,662 | 21% | £79 | +27% |
| Scottish higher | £43,663 to £75,000 | 42% | £58 | +72% |
| Scottish advanced | £75,001 to £125,140 | 45% | £55 | +82% |
| Scottish top | Over £125,140 | 48% | £52 | +92% |
2026/27 rates. The exact relief route depends on your scheme: Relief at Source (the provider claims 20% from HMRC and adds it to your pot, with higher and additional-rate taxpayers reclaiming the rest via Self Assessment), Net Pay (your contribution comes off your pay before income tax is calculated, giving relief at your marginal rate automatically), or Salary Sacrifice (you exchange salary for an employer contribution and save income tax plus employee National Insurance on the sacrificed amount). Scottish taxpayers follow Scottish income-tax bands but claim relief through the same three mechanisms.
Relief at Source vs Net Pay vs Salary Sacrifice
- Relief at Source (RAS): Common in personal pensions and many group personal pensions. Your contribution comes from net pay; the provider claims 20% from HMRC. Higher and additional-rate taxpayers must claim the additional relief via Self Assessment, otherwise it is left on the table.
- Net Pay arrangement: Common in occupational schemes, including many large employer schemes. Your contribution is taken before income tax is calculated, so relief at your marginal rate is automatic and there is nothing to reclaim.
- Salary sacrifice (salary exchange): You agree to a lower salary in return for an extra employer pension contribution. Income tax and employee Class 1 National Insurance are not paid on the sacrificed amount. Some employers also pass on part of their employer-NI saving as an extra contribution; this is scheme-specific.
This calculator uses a simplified Relief at Source style gross-up. Use your provider or payroll figures for exact scheme-specific results.
How Much Do You Actually Need?
The PLSA (now Pensions UK) Retirement Living Standards put real numbers on what retirement costs at three benchmark lifestyles. The figures below are the latest 2024/2025 update, published 2 June 2025. They include the State Pension and assume you own your home outright.
| Standard | Single (£/year) | Two-person (£/year) | Lifestyle |
|---|---|---|---|
| Minimum | £13,400 | £21,600 | Covers essentials such as food, bills, and a UK holiday. No car. Limited eating out. Basic clothing budget. |
| Moderate | £31,700 | £43,900 | A European holiday, a small car, eating out a few times a month, modest charitable giving, hobbies. |
| Comfortable | £43,900 | £60,600 | Longer-haul holidays, a newer car, regular eating out, gym membership, personal care, ongoing home maintenance. |
Source: PLSA / Pensions UK Retirement Living Standards, 2024/2025 update published 2 June 2025. Figures include the State Pension and assume mortgage-free housing. If you rent in retirement, add a meaningful housing-cost line (often £8,000 to £15,000 a year, location-dependent). Verify the current figures at retirementlivingstandards.org.uk.
Auto-Enrolment Minimums
5%
Employee minimum contribution
Of qualifying earnings (commonly described as £6,240 to £50,270 for 2026/27; verify with The Pensions Regulator). Includes tax relief delivered through Relief at Source, Net Pay, or Salary Sacrifice depending on your scheme.
3%
Employer minimum contribution
Of qualifying earnings. Opting out normally means losing the employer contribution entirely. Many employers offer more if you increase your own contribution; some also contribute on full salary rather than qualifying earnings.
8%
Total minimum contribution
Combined minimum since April 2019 (3% employer + 5% employee including tax relief). Treat 8% as a floor, not a target; many financial educators use 12% to 15% (including employer contributions) as a rough planning figure.
Common Pension Mistakes
Only contributing the auto-enrolment minimum
8% total (5% employee including tax relief plus 3% employer) is a floor, not a target. On a typical salary, the minimum alone often builds a pot well below the PLSA 'minimum' standard once State Pension is added. Increase your own contribution as pay rises if affordable.
Not checking if your employer matches higher contributions
Many employers match contributions above the minimum, sometimes up to 6%, 8%, or more. If your employer matches up to 6% and you only contribute 5%, you may be leaving an extra employer contribution on the table. Check your pension booklet or ask HR or your benefits portal.
Cashing out small pension pots when changing jobs
When you take cash from a defined-contribution pension, normally only 25% is tax-free and the remaining 75% is taxed as income. You also lose decades of potential compound growth. A £5,000 pot left invested at 5% for 30 years could grow to roughly £21,600 (illustrative, not guaranteed). Consider transferring older pensions into your current workplace scheme or a SIPP instead, after checking fees and any guarantees you would lose.
Not claiming higher or additional-rate tax relief
Under Relief at Source, the provider only claims basic-rate (20%) relief automatically. Higher and additional-rate taxpayers usually need to claim the extra relief via Self Assessment or in writing to HMRC. Net Pay and Salary Sacrifice schemes give relief at your marginal rate automatically; check which one you are in before assuming you need to claim.
Assuming the State Pension covers everything
The full new State Pension is £241.30 per week, about £12,548 per year for 2026/27, and only 35 qualifying NI years gives the full amount. That alone is below the PLSA / Pensions UK single-person Minimum standard of £13,400 a year (2024/2025 update, published 2 June 2025). Check your State Pension forecast and NI record at GOV.UK.
Ignoring pension fees
A 1% annual charge versus 0.25% over 30 years on a £200,000 pot can make a meaningful difference to the final pot (illustrative; outcomes depend on returns and contributions). Workplace auto-enrolment default funds have a 0.75% cap on the ongoing charge for the default arrangement, but older or self-selected pensions can charge more. Check the ongoing charge and any platform or transaction fees on your scheme.
Triggering the Money Purchase Annual Allowance accidentally
Once you flexibly access a defined-contribution pension (such as taking taxable income from drawdown, or a flexible-access lump sum beyond the tax-free element), the Money Purchase Annual Allowance of £10,000 can apply to future DC contributions. If you may want to keep contributing meaningfully, check the order of decisions with a regulated adviser before you take money out.
Confusing Relief at Source, Net Pay, and Salary Sacrifice
These three relief mechanisms look similar on a payslip but behave differently for tax, National Insurance, and what you may need to claim back. Read your scheme literature or ask payroll. Salary sacrifice in particular changes your taxable salary, which can affect mortgage applications, statutory pay calculations, and certain benefits.
The Cost of Waiting: Why Starting Early Matters
Compound growth is a major force in long-term pension saving. The table below is illustrative only; it shows what happens when £200 a month is saved at 5% nominal growth, with the only difference being when you start.
| Start Age | Years Saving | You Pay In | Pot at 67 | Free Growth |
|---|---|---|---|---|
| 25 | 42 | £100,800 | £363,000 | £262,200 |
| 30 | 37 | £88,800 | £271,000 | £182,200 |
| 35 | 32 | £76,800 | £199,000 | £122,200 |
| 40 | 27 | £64,800 | £144,000 | £79,200 |
| 45 | 22 | £52,800 | £101,000 | £48,200 |
| 50 | 17 | £40,800 | £69,000 | £28,200 |
Based on £200 a month at 5% nominal growth (after fees), retiring at 67. Figures rounded. Does not include tax relief (which would increase totals further) or inflation adjustment. Starting at 25 instead of 35 costs £24,000 more in contributions but, at this growth assumption, gives roughly £164,000 more in the pot.
Worked Example: Hannah, Age 30
Hannah is 30, earns a £45,000 salary, and already has £10,000 in her workplace pension. She and her employer each contribute 5% under a Relief at Source style arrangement. She is a basic-rate taxpayer in the rest of the UK and assumes 5% nominal growth a year. She plans to retire at 67. The figures below match what this calculator displays for that scenario; they are illustrative only and depend on the assumptions holding.
| Years to retirement | 37 |
| Hannah's monthly contribution before tax relief (5% of salary) | £187.50 |
| Employer monthly contribution (5% of salary) | £187.50 |
| Tax relief gross-up (basic-rate Relief at Source) | £46.88 |
| Total monthly contribution modelled | £421.88 |
| Future value of her existing £10,000 pot | about £63,400 |
| Future value of monthly contributions | about £540,200 |
| Total projected pot at 67 | about £603,500 |
| Tax-free lump sum (25%, within Lump Sum Allowance) | about £150,900 |
| Remaining pot for income | about £452,700 |
| Illustrative income at 4% drawdown | about £18,100 a year (about £1,510 a month) |
| Plus full new State Pension (2026/27, 35 NI years) | £12,548 a year |
| Total illustrative retirement income | about £30,650 a year (about £2,555 a month) |
Hannah's estimated total illustrative retirement income of about £30,650 a year (drawdown plus full new State Pension) sits above the single-person Minimum standard of £13,400, slightly below the current single-person Moderate standard of £31,700, and below the Comfortable standard of £43,900 (PLSA / Pensions UK Retirement Living Standards, 2024/2025 update published 2 June 2025). Real outcomes depend on actual investment returns, fees, contribution changes, salary growth, inflation, and the relief mechanism used. If Hannah's scheme uses Net Pay or Salary Sacrifice, her tax-relief mechanics differ from the Relief at Source style modelled here. Salary sacrifice can also reduce her employee Class 1 National Insurance, which this widget does not separately model.
Practical Pension Strategy
- Capture the full employer match first. If your employer matches contributions above the auto-enrolment minimum, increasing your own contribution to qualify for that match is usually the first lever to pull.
- Know which relief mechanism you are in. Relief at Source (provider claims 20%, you reclaim higher and additional-rate relief), Net Pay (relief at marginal rate is automatic), and Salary Sacrifice (lower salary, no income tax or employee NI on the sacrificed amount) all behave differently.
- Claim higher or additional-rate relief if your scheme is Relief at Source. If you are a higher or additional-rate taxpayer, the extra relief usually has to be claimed through Self Assessment or in writing to HMRC.
- Watch the tapered annual allowance and the MPAA. If your threshold income exceeds £200,000 and adjusted income exceeds £260,000, your annual allowance can taper down to £10,000. The Money Purchase Annual Allowance of £10,000 can apply once you have flexibly accessed a defined-contribution pension.
- Review your State Pension forecast and NI record. The full new State Pension is £241.30 a week, about £12,548 a year for 2026/27, and only 35 qualifying years gives the full amount. Check GOV.UK for your State Pension forecast and any gaps you can fill by paying voluntary NI.
- Consolidate small pots carefully. Bringing old pension pots into one place can simplify charges and admin, but always check fees, the default fund, any guaranteed annuity rates, safeguarded benefits (such as protected lump sums or protected pension age), and any exit penalties before transferring.
- Check fees and the default fund. Workplace auto-enrolment defaults are capped at a 0.75% ongoing charge on the default arrangement, but older or self-selected funds can be more expensive. Small differences in charges compound meaningfully over decades.
- Increase contributions after pay rises if affordable. Adding even 1% of each pay rise to your pension while maintaining your take-home pay is a low-friction way to lift your contribution rate over time.
- Get regulated advice before transfers, drawdown, or large decisions. Defined-benefit transfers above £30,000 require advice from a regulated adviser. Drawdown choices, annuity purchase, and large lump sum decisions are usually one-way and benefit from a personalised review.
Different Populations and Contexts
Basic-rate employee in a workplace pension
Auto-enrolment minimums plus any employer match are the usual baseline. Increasing your own contribution to capture the full match is normally the first priority. Relief mechanism depends on the scheme.
Higher or additional-rate taxpayer
Marginal-rate relief makes pension contributions particularly tax-efficient. Under Relief at Source you may need Self Assessment to claim the extra relief; under Net Pay or Salary Sacrifice, marginal-rate relief is delivered through payroll.
Scottish taxpayer
You follow Scottish income tax bands (Starter 19%, Basic 20%, Intermediate 21%, Higher 42%, Advanced 45%, Top 48% for 2026/27). Relief is delivered through the same Relief at Source, Net Pay, or Salary Sacrifice mechanisms; this widget does not separately model Scottish bands inside the calculator.
Self-employed (SIPP or personal pension)
There is no employer to auto-enrol you. A SIPP or personal pension plus the State Pension (where you have enough qualifying NI years) typically forms the core. You can claim higher or additional-rate relief through Self Assessment if you are in a Relief at Source scheme.
High earner subject to the taper
Where threshold income exceeds £200,000 and adjusted income exceeds £260,000, the annual allowance reduces by £1 for every £2 of adjusted income above £260,000, down to a minimum of £10,000. Bonus, dividend, rental, and other income can all push you into the taper.
Person who has triggered the MPAA
Once flexible access happens, defined-contribution contributions are normally limited to £10,000 a year while still attracting tax relief. Defined-benefit accrual is treated separately. Plan future contributions around this limit.
Person near minimum pension age (55, rising to 57 from 6 April 2028)
Decisions taken close to the minimum pension age can be hard to reverse, especially around tax-free lump sums, drawdown, and annuity purchase. Consider regulated advice and Pension Wise (a free MoneyHelper guidance service for over 50s).
Person close to State Pension age
Check your State Pension forecast and NI record at GOV.UK. You may be able to fill qualifying-year gaps by paying voluntary Class 3 NI; the cost-benefit depends on your circumstances and life expectancy assumptions.
Career-break or part-time worker
Lower lifetime earnings often mean a smaller pension pot and possible NI gaps. Workplace auto-enrolment may not apply below the earnings trigger. Look at NI credits (for example, while caring for children under 12 or a disabled adult) and any voluntary NI options.
Defined-benefit (DB) scheme member
DB pensions promise an income based on salary and service, with rules set by the scheme. This calculator does not value DB benefits. Treat your DB statement and the scheme administrator's guidance as the source of truth, and seek regulated advice before considering a DB transfer.
Limitations of This Calculator
- The projection is illustrative, not predictive. Real outcomes depend on actual investment returns, fees, contribution changes, salary growth, inflation, market volatility, and your personal circumstances.
- Growth is assumed to be a constant annual rate. In reality returns vary year to year and sequence-of-returns risk affects drawdown outcomes.
- Inflation is not separately modelled. The growth rate you enter is treated as nominal; consider whether you want to think in real terms (after inflation) or nominal terms.
- Salary growth is not modelled. Contribution amounts as a percentage of salary stay flat unless you re-enter the calculator with a higher salary.
- Investment fees are not separately modelled. Treat your growth rate as net of fees, or reduce it to reflect typical workplace-pension charges.
- The calculator uses a simplified Relief at Source style gross-up on your contribution. Net Pay and Salary Sacrifice schemes work differently, and salary sacrifice can also reduce employee Class 1 National Insurance.
- Scottish pension tax-relief rates are described in the content but are not selectable inside the calculator widget.
- The tapered annual allowance is not calculated; the Money Purchase Annual Allowance is not detected; the Lifetime Allowance replacement allowances (Lump Sum Allowance, Lump Sum and Death Benefit Allowance, Overseas Transfer Allowance) are described but not modelled.
- Drawdown income tax, annuity rates, fund risk, provider charges, and defined-benefit benefits are not modelled.
- This is general information only and is not regulated financial advice. For personal advice, speak to a regulated financial adviser; for free guidance, consider Pension Wise (for over 50s) or MoneyHelper.
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Sources
- GOV.UK, Tax on your private pension contributions
- GOV.UK, Annual allowance for pension savings
- GOV.UK, Tapered annual allowance
- GOV.UK, Money Purchase Annual Allowance
- GOV.UK, Workplace pension contributions and auto-enrolment
- GOV.UK, The new State Pension (2026/27 rates)
- GOV.UK, State Pension age
- GOV.UK, Check your National Insurance record
- HMRC, Pension schemes rates and allowances (Lump Sum Allowance, Lump Sum and Death Benefit Allowance, Overseas Transfer Allowance)
- The Pensions Regulator, Automatic enrolment contribution rates and qualifying earnings
- PLSA / Pensions UK, Retirement Living Standards (2024/2025 update, published 2 June 2025)
- MoneyHelper and Pension Wise, consumer pension guidance
- Financial Conduct Authority, Pension transfer and investment advice guidance
How to use this tool
Enter your age, salary, and current pension pot
Set your employee and employer contribution percentages
Choose your tax band and expected growth rate to see projections
Common uses
- Forecasting your pension pot at retirement
- Comparing the impact of increasing contributions
- Understanding how tax relief boosts your savings
- Checking if you're on track for a comfortable retirement
- Estimating salary sacrifice or employer-match impact before changing pension contributions
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Frequently Asked Questions
How much should I put into my pension?
What is auto-enrolment?
What is pension tax relief?
When can I access my pension?
What is the State Pension?
What is the annual allowance?
What is the lifetime allowance?
Should I use a workplace pension or SIPP?
How does pension compound growth work?
What happens to my pension if I die?
How much pension do I need to retire comfortably?
What is salary sacrifice for pensions?
How does the UK pension system compare to the US, Canada, and Australia?
Results are for general informational purposes only and should be checked before use. They are not professional advice. See our Disclaimer and Terms of Service.