UK Pension Calculator

Plan your retirement with our comprehensive pension calculator. Estimate your state pension, workplace pension, and private pension savings all in one place.

How this calculator works

This comprehensive calculator estimates your retirement income based on your current savings, ongoing contributions, and investment returns. We factor in inflation, salary growth, and the State Pension to give you both nominal and real-value projections.

Personal Information

Current Age

Your current age. This helps us calculate how long your pension has to grow.

Retirement Age

The age you plan to retire. State Pension age is currently between 66-68.

Life Expectancy

Your estimated life expectancy. The UK average is 81 years.

Current Finances

Current Pension Savings (£)

The total value of all your existing pension savings.

Monthly Savings (£)

How much you save towards your pension each month.

Current Annual Salary (£)

Your current annual salary before tax.

Employer Contribution (%)

The percentage your employer contributes to your pension. Minimum is 3%.

NI Qualifying Years

Number of years you've paid National Insurance. You need 35 years for full State Pension.

Future Assumptions

Investment Return Rate (%)

Expected annual investment return. Typically 3-8% after inflation.

Inflation Rate (%)

Expected annual inflation rate. Bank of England target is 2%.

Salary Growth Rate (%)

Expected annual salary increase. UK average is 2-3%.

Understanding Your Pension Options

State Pension

The foundation of your retirement income, currently worth up to £203.85 per week (2023/24).

Need 35 qualifying years for full amount
Based on National Insurance contributions
Can check your State Pension forecast online
May be able to top up missing years

→ Check your State Pension forecast → Top up your National Insurance

Workplace Pension

Automatic enrollment makes saving for retirement easier through your employer.

Minimum 8% total contribution
At least 3% from employer
Immediate tax relief on contributions
Salary sacrifice can increase benefits

→ Learn about workplace pensions → Understanding pension tax relief

Private Pension

Additional personal pensions can help you reach your retirement goals.

Self-Invested Personal Pensions (SIPPs)
Personal Pension Plans
Flexible investment options
Can supplement workplace pension

→ Compare pension types → Guide to personal pensions

Additional Resources

→ Pension Wise: Free guidance service → The Pensions Regulator → Pensions Advisory Service

All information is based on current UK pension rules (2023/24). External links are provided for reference and lead to official government and regulated financial guidance services.

UK Pension Guide: Frequently Asked Questions

How does automatic enrollment work in the UK?

Your employer must automatically enroll you into a workplace pension scheme if you: are aged between 22 and State Pension age, earn over £10,000 per year, and work in the UK. The minimum total contribution is 8% of your qualifying earnings, with at least 3% from your employer.

What is the current State Pension amount?

The full new State Pension is £203.85 per week (2023/24 tax year). However, you'll need 35 qualifying years of National Insurance contributions to get the full amount. You need at least 10 qualifying years to get any State Pension.

When can I access my pension?

You can usually access private pensions from age 55 (rising to 57 in 2028). The State Pension age is currently 66, increasing to 67 between 2026 and 2028, and planned to rise to 68 between 2044 and 2046.

How much should I contribute to my pension?

A common rule of thumb is to contribute a percentage of your salary equal to half your age when you start saving. For example, if you start at 30, aim for 15%. The minimum workplace pension contribution is 8% (with at least 3% from your employer), but you may need to save more for a comfortable retirement.

What tax relief do I get on pension contributions?

Basic rate taxpayers get 20% tax relief automatically. Higher rate taxpayers can claim an additional 20%, and additional rate taxpayers an extra 25% through their tax return. There's an annual allowance (typically £60,000 for 2023/24) and a lifetime allowance for tax-efficient pension savings.

What happens to my workplace pension if I change jobs?

Your pension remains yours. You can leave it with your old employer's scheme, transfer it to your new workplace pension, or move it to a private pension. Consider factors like fees, investment options, and benefits before transferring.

How is my pension protected?

Workplace and private pensions are protected by the Financial Services Compensation Scheme (FSCS) up to 100% if your provider fails. The Pension Protection Fund (PPF) protects defined benefit schemes if your employer becomes insolvent.

What happens to my pension when I retire?

With defined contribution pensions, you can: take 25% tax-free, buy an annuity for guaranteed income, keep it invested and take flexible withdrawals (drawdown), or take it all as cash (subject to tax). State Pension is paid as regular income.

Can I opt out of a workplace pension?

Yes, you can opt out, but consider carefully as you'll lose your employer's contributions and tax relief. Your employer must re-enroll you every 3 years, but you can opt out again.

What is salary sacrifice for pensions?

Salary sacrifice means giving up part of your salary in exchange for pension contributions from your employer. This can reduce your National Insurance contributions and income tax, potentially increasing your take-home pay while maintaining the same pension contribution.

Important Notice

This information is based on current UK pension rules and tax year 2023/24. Pension rules, tax relief, and contribution limits may change. For personalized advice, consult a financial advisor or visit gov.uk for the latest guidance.

This calculator provides estimates based on current pension rules and market assumptions. For personalized advice, please consult a financial advisor.