UK Pension Calculator
Estimate your pension pot at retirement. See how employer contributions, government tax relief (20-45%), and compound growth combine - plus your estimated annual retirement income including the State Pension.
Frequently Asked Questions
How does pension tax relief work in the UK?
When you contribute to a pension, the government adds tax relief based on your income tax band. Basic rate (20%) taxpayers: put in £80, get £100 in the pension. Higher rate (40%) taxpayers: effectively invest £100 for just £60 net cost (claiming the extra 20% via Self Assessment). Additional rate (45%) taxpayers: £100 in pension costs just £55 net. This makes pension contributions one of the most powerful tax-saving tools available.
What is auto-enrolment and how much must my employer contribute?
Auto-enrolment requires UK employers to automatically enrol eligible employees in a workplace pension. The legal minimum for 2026/27 is a total contribution of 8% of qualifying earnings - at least 3% from your employer and at least 5% from you (including tax relief). Many employers contribute more than the minimum, especially for senior roles.
What is a SIPP and should I have one alongside a workplace pension?
A Self-Invested Personal Pension (SIPP) is a pension you control - you choose the investments from a wide range of funds, shares, and ETFs. SIPPs are particularly useful if your workplace pension has limited investment options or high fees. A smart strategy: contribute enough to your workplace pension to get the full employer match, then use a SIPP (with providers like Vanguard, AJ Bell, or Hargreaves Lansdown) for additional contributions.
How much pension do I need for retirement?
The Pensions and Lifetime Savings Association (PLSA) Retirement Living Standards suggest: £14,400/year for a 'minimum' lifestyle, £31,300/year for 'moderate', and £43,100/year for 'comfortable' (all for a single person, 2026 figures). These assume you also receive the full State Pension. As a rough guide, multiply your target annual income by 25 to get the pension pot needed (the 4% rule).
What is the State Pension and how do I qualify?
The full new State Pension is £221.20/week (£11,502/year) for 2026/27. To receive the full amount, you need 35 qualifying years of National Insurance (NI) contributions or credits. You need at least 10 qualifying years to receive any State Pension. You can check your State Pension forecast and NI record at gov.uk/check-state-pension.
When can I access my pension?
You can normally access your pension from age 55 (rising to 57 in 2028). You can take 25% of your pension as a tax-free lump sum. The remaining 75% can be taken as a flexible drawdown (taxed as income) or used to buy an annuity (guaranteed income for life). There is no obligation to take your pension at any particular age.