Pension Projection Calculator
Estimate the size of your pension pot at retirement based on current savings, monthly contributions, employer contributions, and investment growth.
How Pension Projection Calculator works
Pension projection methodology
Future pot = FV(existing pot, growth rate, years) + FV(annuity, monthly contributions, growth rate, months). The 4% drawdown rule is a widely used heuristic for a sustainable withdrawal rate — it suggests withdrawing 4% of your pot annually allows it to last 30+ years.
State pension
The full new state pension is £221.20/week (£11,502.40/year) for 2025-26. You need 35 qualifying National Insurance years for the full amount. The state pension age is currently 66, rising to 67 by 2028 and 68 by 2046 (subject to review).
Investment growth assumption
The default 5% growth is a real (inflation-adjusted) return assumption commonly used in pension projections. Nominal returns before inflation might be 7–8% for a balanced fund. Conservative planning uses 3–5% real. Actual returns depend on your fund allocation.
Tax relief on pension contributions
Employee pension contributions benefit from tax relief at your marginal rate. A basic-rate taxpayer contributing £80 receives £20 tax relief, making the true pension contribution £100. Higher-rate taxpayers can claim additional relief via Self Assessment. Net cost is effectively lower than the headline contribution rate.
Frequently asked questions
How much should I have in my pension at 40?
A common rule of thumb is to have 3× your salary by age 40. On a £40,000 salary, that's £120,000. The Pensions Advisory Service benchmark suggests: annual salary by 30, 3× by 40, 7× by retirement.
What is the 4% drawdown rule?
The 4% rule suggests withdrawing 4% of your pension pot in year one of retirement, then adjusting for inflation each year. Historically this has allowed a pension pot to last 30+ years. A £200,000 pot generates £8,000/year by this rule.
What is the pension annual allowance?
The annual allowance is £60,000 for most people (2024-25 and 2025-26), or 100% of earnings if lower. This covers both employee and employer contributions. The money purchase annual allowance (MPAA) is £10,000 for those who have accessed drawdown.
What is auto-enrolment?
Under auto-enrolment, employers must automatically enrol eligible workers into a pension and make minimum contributions. The minimum total contribution is 8% of qualifying earnings (3% employer + 5% employee). You can opt out but lose employer contributions.
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This calculator provides estimates for informational purposes only. It is not a substitute for personalised pension or financial advice. Speak to a regulated financial adviser before making pension decisions.