How your pension pot grows
A workplace or personal pension builds in two ways: the money paid in, and the growth it earns while invested. Every month your contribution, your employer’s contribution and the tax relief the government adds all go into the pot, and that money compounds over your working life. Because a younger saver has decades of compounding ahead, most of the final balance often comes from investment growth rather than the contributions themselves, which is why starting early matters so much.
This calculator projects your pot forward to your retirement age and shows the result in today’s money by default, so the figure reflects what it would buy now rather than an inflated future number. It does that by applying a real return (growth after inflation) and holding your contributions flat in real terms. Growth is an assumption, not a promise, so it’s worth testing the cautious, balanced and adventurous settings to see the range.
Turning your pot into retirement income
A pot is only useful once it becomes income. With pension drawdown you leave the pot invested and withdraw from it each year. A common starting point is the 4% rule: draw 4% of the pot in year one, then adjust for inflation, and historically the money lasted around 30 years. You can also take up to 25% of the pot tax-free as a lump sum from age 55 (rising to 57 from April 2028), with the rest taxed as income when you draw it. The calculator shows both, and lets you set your own withdrawal rate, because a lower rate of 3 to 3.5% is more cautious if you retire early.
The State Pension on top
The State Pension is separate from your own savings. It’s funded by the government from your National Insurance record, so the tool adds it as its own line rather than mixing it into your pot. The full new State Pension is £12,547.60 a year for 2026/27 (£241.30 a week), after a 4.8% triple-lock rise in April 2026. You need about 35 qualifying NI years for the full amount and at least 10 to receive anything, and it starts at your State Pension age of 66 to 68. Check your personal forecast at gov.uk, because your figure depends on your own record.
Auto-enrolment and tax relief
If you’re employed, you’re likely paying in through auto-enrolment. The statutory minimum is 8% of qualifying earnings, with at least 3% from your employer and the rest from you, tax relief included. Tax relief is what makes pension saving efficient: for a basic-rate taxpayer, £80 from your take-home becomes £100 in the pot, and higher-rate taxpayers can claim more back. Paying above the minimum, or using salary sacrifice, adds more to the pot and can cut your National Insurance too.
Frequently asked questions
How much will a £100,000 pension pay per month?
As a rough guide, drawing 4% a year from a £100,000 pot gives £4,000 a year, or about £333 a month, before tax. Taking the 25% tax-free lump sum first (£25,000) leaves £75,000, which at 4% is around £3,000 a year or £250 a month. On top of that, a full new State Pension adds £12,547.60 a year for 2026/27. The 4% figure is a starting point, not a guarantee, so test your own withdrawal rate above.
How do I calculate what pension I'll get?
Project your pot forward, then turn it into income. Start with your current pot, add your yearly contributions (yours plus your employer plus tax relief), and grow it each year by an assumed return until your retirement age. That gives the pot. To get an income, apply a withdrawal rate such as 4%, add the State Pension you'll qualify for, and remember you can take 25% of the pot tax-free. The calculator above does all of this in today's money.
How much is the new State Pension in 2026/27?
The full new State Pension rose 4.8% in April 2026 under the triple lock, from £230.25 a week (£11,973 a year) in 2025/26 to £241.30 a week, which is £12,547.60 a year for 2026/27. You need about 35 qualifying National Insurance years for the full amount and at least 10 to get anything. It is paid on top of any workplace or personal pension, which is why this tool shows it as a separate line.
Can I take 25% of my pension tax-free?
Yes. With most defined-contribution pensions you can take up to 25% of the pot as a tax-free lump sum from age 55 (rising to 57 from April 2028), capped by the lump sum allowance of £268,275. The remaining 75% is taxed as income when you draw it. You can take the 25% in one go or in chunks. Taking the lump sum reduces the pot left to provide an income, which the drawdown line above reflects.
What is pension drawdown and the 4% rule?
Pension drawdown means leaving your pot invested and withdrawing an income from it, rather than buying an annuity. The 4% rule is a common shortcut: withdraw 4% of your pot in year one, then adjust for inflation, and historically the money lasted around 30 years. On a £300,000 pot that's £12,000 a year. It's a guide based on past US market returns, not a promise, so a lower rate of 3 to 3.5% is more cautious if you retire early.
Can I retire at 55 with a £300,000 pension?
You can normally access a defined-contribution pension from 55 (rising to 57 from April 2028), so it's possible, but £300,000 has to stretch a long way if you stop work that early. At 4% it provides about £12,000 a year before any State Pension, which doesn't start until your State Pension age of 66 to 68. Retiring at 55 means funding the gap years entirely from your pot, so a lower withdrawal rate is wise. Model it above.
What are the auto-enrolment minimum contributions?
Under auto-enrolment the minimum total is 8% of your qualifying earnings, made up of at least 3% from your employer and the rest from you, with tax relief included. Qualifying earnings for 2025/26 are the band between £6,240 and £50,270. Many schemes are more generous or apply the percentage to full salary. This calculator applies your chosen percentages to the salary you enter, so adjust them to match your own scheme.
Does this pension calculator include the State Pension?
It shows the State Pension as a separate top-up rather than mixing it into your pot, because it's funded by the government from your National Insurance record, not from your savings. The tool adds the full new State Pension (£12,547.60 a year for 2026/27) to your drawdown income to give a total, assuming you qualify for the full amount. Check your own forecast at gov.uk, as your figure depends on your NI years.
This calculator is a guide to help you think, not financial advice. Projections use assumed growth and withdrawal rates and can’t know your personal circumstances or tax position. For decisions about your retirement, speak to a qualified financial adviser or use the free MoneyHelper and Pension Wise services.
This tool is a guide, not financial advice.
