Pension Projection Calculator
Estimate the size of your pension pot at retirement based on current savings, monthly contributions, employer contributions, and investment growth.
Reviewed by Richard Ross · Last updated April 2026
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 £241.30/week (£12,547.60/year) for 2026-27. 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.
UK annual allowance and auto-enrolment
The pension annual allowance for 2026-27 is £60,000 (or 100% of earnings if lower), covering both employee and employer contributions. Under auto-enrolment, the minimum total contribution is 8% of qualifying earnings (at least 3% from the employer). Contributing more than the auto-enrolment minimum significantly improves retirement outcomes — each additional 1% of a £45,000 salary adds around £450/year to your pot before growth.
Common projection scenarios
A 30-year-old on £40,000 contributing 8% total (5% employee + 3% employer) with a 5% real growth rate to age 67 could accumulate approximately £400,000 in today's money. Adding the state pension of £12,548/year (2026-27), the total retirement income estimate reaches around £28,500/year — close to the PLSA moderate living standard of £31,300/year (single person, 2025).
Worked example: 35-year-old on £55,000 with existing pot
Source: HMRC — Pension annual allowance and tax relief, GOV.UK. MoneyHelper — Pension basics (moneyhelper.org.uk). PLSA Retirement Living Standards 2025 (plsa.co.uk).
Further reading
From April 2027, unused DC pension pots will count towards your estate for inheritance tax. If your projected pot plus property pushes your estate above £325,000, this change may affect your retirement drawdown strategy.
How pension inheritance tax changes what to draw down and when →Inheritance tax on pension pots from 2027 →Further reading
The nil-rate band, residence nil-rate band, and spousal transfers interact in ways that aren't obvious from the headline 40% rate. A step-by-step guide walks through every stage of the IHT calculation using the 2026/27 figures.
How to calculate inheritance tax: a step-by-step guide for 2026 →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.
What happened to the lifetime allowance?
The lifetime allowance was abolished from 6 April 2024. It has been replaced by the lump sum allowance (£268,275 tax-free across all pensions) and the lump sum and death benefit allowance (£1,073,100). There is no longer a charge on pension pots above a set total value.
How does early retirement affect my pension projection?
Retiring before 67 reduces your pension in two ways: fewer years of contributions and growth, and more years drawing down. Retiring at 60 instead of 67 on the same salary and contribution rate can reduce a projected pot by 30–40%. It also means waiting up to 7 years for the state pension to begin.
What is a SIPP and should I open one?
A SIPP (Self-Invested Personal Pension) is a defined contribution pension where you choose the investments. SIPPs offer access to a wider range of assets — individual shares, ETFs, investment trusts, commercial property — compared to standard workplace pensions. They are most useful for self-employed people, those who want to consolidate old pensions, or those who want specific investment control. Tax relief and annual allowance rules are identical to workplace pensions.
How does inflation affect my projected pension?
This calculator uses a real (inflation-adjusted) growth rate by default (5%). If you enter a nominal rate (e.g., 7–8%), subtract expected inflation (2–3%) to get the real rate for planning purposes. At retirement, inflation continues to erode purchasing power during drawdown — a £30,000 income at age 67 is worth only about £18,500 in today's money by age 85 at 3% inflation. Consider index-linked annuities or increasing drawdown to offset this.
What happens to my pension if I change jobs?
Your pension pot stays with the scheme until you move it or retire. You have three choices: leave it in the old employer's scheme (where it continues to grow but you make no new contributions), transfer it to your new employer's scheme, or transfer to a personal pension or SIPP. Old pots from short employments are often left behind — the government's Pension Tracing Service (gov.uk/find-pension-contact-details) can help locate them.
Can I access my pension before 55?
Normally no — the minimum pension access age is 55 (rising to 57 in April 2028). Exceptions are limited to serious ill-health, which allows access before the minimum age. Taking pension savings before the minimum age is an "unauthorised payment" and subject to a substantial HMRC tax charge (55% of the amount taken). Beware pension unlocking scams that claim you can access pension funds early.
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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.