Project your retirement pot, estimate monthly income and calculate tax relief on contributions.
Project Your Pension Pot
State Pension Age is 66, rising to 67 (2026–2028)
£
Used to calculate tax relief and employer contributions
%
Auto-enrolment minimum is 5%
%
Auto-enrolment minimum is 3%
£
Leave at 0 if starting from scratch
—
Projected Pot
—
Est. Monthly Income
—
Annual Tax Relief
Your monthly contribution
—
Employer monthly contribution
—
Total monthly into pot
—
Your effective monthly cost (after tax relief)
—
Tax relief rate
—
Years to retirement
—
Growth rate applied
—
Projected pot at retirement
—
Annual Allowance Used— of £60,000
Annual Allowance 2026/27: £60,000 total (your contributions + employer's). Excess is taxed at your marginal rate.
⚠️ Your total annual contributions exceed the £60,000 Annual Allowance. The excess will be subject to a tax charge at your marginal rate. Seek advice from a qualified financial adviser.
Projection assumes level contributions, constant growth rate and no charges. The 4% rule is used to estimate monthly income — it is a guideline, not a guarantee. This is not financial advice. State Pension is additional income not included here. Always consult a regulated financial adviser for retirement planning.
How the Pension Calculator Works
This calculator uses standard compound growth to project how your pension pot could grow between now and your target retirement age. It factors in your own contributions, your employer's contributions, any existing pot, and a chosen investment growth rate.
Compound Growth
The power of compound growth means your pot earns returns not just on your contributions, but on all previous growth too. A modest monthly contribution in your 30s is worth significantly more than the same contribution started in your 50s, because it has more time to compound. Starting early is the single most impactful decision you can make.
How Pension Tax Relief Works
One of the most valuable features of a pension is tax relief — the government tops up your contributions based on your income tax rate:
Basic rate taxpayer (20%): For every £80 you put in, the government adds £20, so £100 goes into your pot. Your real cost is £80.
Higher rate taxpayer (40%): You contribute £100 gross. Your real cost is £60 (you claim the extra 20% back via Self Assessment).
Additional rate taxpayer (45%): Your real cost per £100 contributed is just £55.
Employer contributions are also free of Income Tax and National Insurance — making them effectively worth more than equivalent salary.
The Annual Allowance 2026/27
The Annual Allowance is the maximum total amount that can be paid into your pension and receive tax relief in a tax year. For 2026/27 it is £60,000 — including both your own contributions and your employer's. It is capped at 100% of your earnings if that is lower. If you exceed the allowance, you face a tax charge on the excess. Very high earners (above £260,000 adjusted income) face a tapered annual allowance — consult an adviser if this may apply to you.
The 4% Rule
The estimated monthly income shown is based on the widely-used 4% rule: withdrawing 4% of your pot per year, divided by 12. Research suggests this rate is sustainable over a 30-year retirement under typical market conditions. This is an estimate — actual income depends on how you draw down your pension (drawdown vs annuity), investment returns in retirement, and your personal circumstances.
Auto-Enrolment
Since 2012, most UK employers are legally required to auto-enrol eligible workers into a workplace pension. The legal minimums are 5% from you and 3% from your employer (a combined 8% of qualifying earnings). Many employers offer more, particularly as a salary benefit — always check if your employer will match additional contributions, as this is effectively free money.
What This Calculator Does Not Include
State Pension: Not included. The new State Pension adds additional retirement income on top of your private pot — check your State Pension forecast on GOV.UK.
Investment charges: Fund management charges (typically 0.1–1% p.a.) will reduce your real return — factor this into your growth rate selection.
Inflation: Projections are in nominal (today's money equivalent) terms. Real purchasing power will be lower depending on inflation over the period.
Defined Benefit pensions: This calculator is for Defined Contribution pensions only. DB (final salary) pensions are calculated differently.
Worked Examples
Three realistic scenarios showing how contributions and time compound into retirement income. All projections use the stated growth rate with monthly compounding.
Amy, 28 — Starting Out
Salary £30k · 5% employee + 3% employer · 5% growth · 39 years to retirement (age 67)
Monthly into pot£200
Annual tax relief£300
Real monthly cost£100
Projected pot£289,000
Est. monthly income~£963/month
David, 40 — Higher Rate
Salary £65k · 8% employee + 5% employer · 6% growth · 27 years to retirement (age 67) · £25k existing pot
Monthly into pot£704
Annual tax relief£2,080
Real monthly cost£260
Projected pot£693,000
Est. monthly income~£2,310/month
Lisa, 50 — Catching Up
Salary £45k · 12% employee + 4% employer · 5% growth · 17 years to retirement (age 67) · £40k existing pot
Monthly into pot£600
Annual tax relief£1,080
Real monthly cost£360
Projected pot£292,000
Est. monthly income~£973/month
All projections are estimates based on stated growth rates with monthly compounding and level contributions. Actual returns vary. Not financial advice.
Frequently Asked Questions
The annual allowance for 2026/27 is £60,000 (or 100% of your earnings if that is lower). This is the maximum total pension input — your contributions plus your employer's — that can benefit from tax relief in a single tax year. Exceeding it results in a tax charge on the excess at your marginal rate. Very high earners above £260,000 adjusted income face a tapered annual allowance — seek regulated advice if relevant.
The minimum pension access age for most Defined Contribution pensions is currently 55, rising to 57 in April 2028. You do not need to stop working to access your pension — you can draw flexibly from age 55/57 while continuing employment. The State Pension is paid separately from your State Pension Age (currently 66, rising to 67 between 2026 and 2028).
Yes — the annual allowance applies to all pension inputs combined. The total of your contributions plus your employer's must not exceed £60,000 (or 100% of earnings) in 2026/27. For most employees earning under £100,000 with standard contribution rates, this limit is not a concern. But if your employer makes very generous contributions, it is worth monitoring the combined annual figure.
The 4% rule is a widely used guideline suggesting you can sustainably withdraw 4% of your pension pot per year over a 30-year retirement — for example, a £300,000 pot generates £12,000/year (£1,000/month). It was developed from research into historical market returns. It is a planning estimate, not a guarantee. Actual income depends on investment returns in retirement, inflation, charges, and whether you use drawdown or an annuity. Always take regulated financial advice before making retirement income decisions.