Pension Calculator
Project your pension pot to retirement, calculate tax relief, and estimate your retirement income for 2025/26.
Your Details
Your current age
Minimum private pension age is 55 (rising to 57 in 2028)
Total value of your existing pension savings
Your personal monthly pension contribution
Your employer's monthly contribution to your pension
A typical balanced pension fund returns around 4-6% per year
Projected Pension Pot at Retirement
£505,783
At age 67 with 5% annual growth
Total Contributions
£133,200
Employee + employer contributions
Total Growth
£352,583
Compound investment growth
Tax Relief Gained
£17,760
Basic rate (20%) tax relief on your contributions
Estimated Annual Retirement Income
£20,231
Based on the 4% safe withdrawal rate
Pension Growth Over Time
Year-by-Year Breakdown
| Age | Annual Contribution | Growth | Pot Value |
|---|---|---|---|
| 31 | £3,600 | £1,180 | £24,780 |
| 32 | £3,600 | £1,419 | £29,799 |
| 33 | £3,600 | £1,670 | £35,069 |
| 34 | £3,600 | £1,933 | £40,602 |
| 35 | £3,600 | £2,210 | £46,413 |
| 36 | £3,600 | £2,501 | £52,513 |
| 37 | £3,600 | £2,806 | £58,919 |
| 38 | £3,600 | £3,126 | £65,645 |
| 39 | £3,600 | £3,462 | £72,707 |
| 40 | £3,600 | £3,815 | £80,122 |
Important: Pensions & Inheritance Tax from April 2027
From 6 April 2027, unused pension funds and death benefits will be included within the value of a person's estate for inheritance tax (IHT) purposes. This is a significant change — pensions were previously exempt from IHT. Consider reviewing your estate planning and the order of drawdown from different accounts in retirement.
This calculator is for informational purposes only and does not constitute financial advice. Tax calculations are based on current HMRC rates and may not reflect your exact circumstances. Always consult a qualified financial adviser.
Understanding UK Pensions
A workplace pension is one of the most tax-efficient ways to save for retirement in the UK. Your contributions receive tax relief at your marginal rate, your employer typically contributes too, and your investments grow free of income tax and capital gains tax within the pension wrapper.
Tax Relief on Pension Contributions
For every £80 you contribute as a basic rate taxpayer, HMRC adds £20 in tax relief, bringing your gross contribution to £100. Higher rate (40%) and additional rate (45%) taxpayers can claim further relief through their self-assessment tax return. The annual allowance for 2025/26 is £60,000, meaning total contributions (employee + employer) exceeding this limit may be subject to an annual allowance charge.
The 4% Rule for Retirement Income
The 4% rule is a widely-used guideline suggesting you can withdraw 4% of your pension pot in the first year of retirement, then adjust for inflation each year, with a high probability of your savings lasting 30 years or more. While it is a useful starting point, your actual sustainable withdrawal rate may differ based on investment returns, inflation, and your personal circumstances.
Auto-Enrolment Minimums
Under auto-enrolment, the minimum total contribution is 8% of qualifying earnings (5% employee, 3% employer). Many employers offer more generous schemes. Contributing more than the minimum can significantly increase your retirement pot, especially when combined with employer matching. Use this calculator to see the impact of increasing your contributions over time.
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