UK Pension Tool

Pension retirement calculator

Estimate your pension pot at retirement. Factor in employer contributions, investment growth, salary increases, and the UK State Pension.

The average UK pension pot at retirement is under £60,000 — start planning now.

Inputs

Your age

Planning to work until

Contributions stop at this age, pot keeps compounding

Target retirement age

When you start drawing the pension

Current pension pot

Total value of your existing pension(s)

£

Annual salary (gross)

£


Your contribution

% of gross salary — £1,750/yr (£146/mo)

%

Employer contribution

% of gross salary — £1,050/yr (£88/mo)

%


Annual salary growth

Expected pay rises per year

%

Investment growth rate

Expected annual return (nominal)

%

State Pension qualifying years

NI years on your record (check GOV.UK)

Results

Share your result

🏦Total pension pot

£544,106

After 37 years

💰25% lump sum

£136,026

Available from age 55 (57 from 2028)

📊Remaining pot

£408,080

After lump sum withdrawal

Swipe for more

🇬🇧State Pension (annual)

£11,502

Based on 35 qualifying years

📅State Pension (monthly)

£959

From State Pension age (currently 67)

Pension pot growth over time

Projected pension pot


Guide

Pension Questions

How much should I contribute to my pension?

A common rule of thumb is to contribute half your age as a percentage of salary. The minimum auto-enrolment total is 8% (5% employee + 3% employer). Contributing more early on has a disproportionate impact thanks to compound growth.

What is the 25% tax-free lump sum?

When you access your defined contribution pension (from age 55, rising to 57 in 2028), you can take up to 25% of your pot tax-free. The rest is taxed as income when drawn down.

How much is the UK State Pension?

The full new State Pension is £221.20/week (£11,502/year) in 2025/26. You need 35 qualifying NI years for the full amount and at least 10 years to get anything.

What growth rate should I assume?

A typical assumption for a diversified pension fund is 5% nominal. Conservative estimates use 3–4%, optimistic projections 6–7%. Subtract 2–3% for inflation to get a real-terms figure.

How does salary sacrifice affect my pension?

With salary sacrifice, contributions come from gross pay before tax and NI. Both you and your employer save NI contributions. Many employers pass on their NI saving as an extra pension contribution.


How We Calculate

1. Pension pot growth — for each year until retirement:
  • Employee contribution = salary × employee rate
  • Employer contribution = salary × employer rate
  • Both contributions are added at the start of the year
  • Investment growth is applied to the full pot: pot × (1 + growth rate)
  • Salary grows each year by the salary growth rate
If you set a "stop working" age earlier than retirement, contributions stop but the pot continues to grow through investment returns until retirement.
2. Tax-free lump sum — under current rules you can take 25% of your pension pot as a tax-free lump sum at retirement. The remaining 75% is subject to income tax when withdrawn.
3. State pension — based on your qualifying National Insurance years (max 35). The full new state pension is £221.20/week (2025/26). You need at least 10 qualifying years to receive anything; the amount scales proportionally from 10 to 35 years.

All figures are nominal — no inflation adjustment. Investment growth is applied as a flat annual rate with no volatility modelling. This is an illustrative model, not financial advice.

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