UK Pension Calculator

What the UK pension calculator does

The calculator projects how large your pension pot could grow by retirement, from your current balance, the contributions you keep adding and an expected rate of return. It then estimates the yearly income the pot could provide through drawdown and adds the full new State Pension for a total retirement income.

The payoff from a pension is decades away, which makes it feel abstract. Linking what you save now to the income you might live on later helps you judge whether your plan is on track.

How the projection works

The projected pot is your current pot grown at the expected return until retirement, plus your monthly contributions, each compounded from when it is paid in, with earlier contributions growing for longer. The advanced options let you deduct an annual fee from the return and take a tax-free lump sum at retirement, which reduces the pot left for income.

The calculator then applies a 4% drawdown rate to the pot to estimate yearly income. A lower rate is more cautious and helps the pot last; a higher rate gives more income now but more risk of running short.

For example, a £50,000 pot plus £500 a month for 25 years at 6% grows to about £569,745, of which £200,000 is money paid in. At 4%, that supports about £22,790 a year, and with the full State Pension of £12,547.60 the total is about £35,337 a year, or about £2,945 a month before tax.

Understanding drawdown

With drawdown you leave the pot invested and withdraw an income from it instead of exchanging it for a guaranteed annuity. You keep flexibility and the chance of further growth, but the income is not guaranteed and the pot can run down if you withdraw too much or markets fall.

No single rate is right for everyone; it depends on your age, health, other income and how much risk you can take. The 4% figure used here is a starting point, so treat the income estimate as a guide.

When to use it

• To check whether your contributions are likely to build a big enough pot.
• To see how higher contributions change your projected retirement income.
• To test retiring a few years earlier or later.
• To compare cautious and more optimistic return assumptions.
• To see the income a given pot might realistically support.

What drives the outcome

Time matters most: compounding rewards a long horizon, so starting early has a large effect. Steady contributions, especially with employer contributions in a workplace scheme, build the pot faster than most people expect. Small differences in the assumed return compound into large differences over decades, so be realistic. And the drawdown rate decides both your income and how long the pot lasts.

Drawdown is not the only option

An annuity exchanges some or all of the pot for a guaranteed income, giving up flexibility and growth for certainty. Many retirees take a tax-free lump sum and use drawdown or an annuity for the rest, and some mix the two, using an annuity for essential spending and drawdown for the flexible part.

Drawdown leaves you exposed to investment performance and the risk of drawing too much too soon, but keeps your money invested and accessible. An annuity removes that uncertainty but is generally irreversible. The right mix depends on your other income, your attitude to risk and your circumstances, which is where regulated advice is valuable.

Things to keep in mind

• Returns are not smooth. Real returns vary from year to year and can be negative, so treat the projection as a central estimate.
• Inflation erodes value. A pot that looks large in future pounds buys less than the same figure today.
• The State Pension added is the full amount. You need 35 qualifying years of National Insurance for it; check your forecast if you may get less.
• Tax applies to income. Pension income beyond any tax-free lump sum is taxable when drawn, so your take-home income will be lower than the gross figure.
• Charges reduce growth. Fund and platform fees reduce your net return; use the fee option to allow for them.

Reading your result

The calculator shows a projected pot, an estimated drawdown income, the total income with the State Pension and the split between what you paid in and investment growth. Use them to see whether you are broadly on track and how changes to your saving might help, rather than as an exact forecast. Confirm your plan with a regulated financial adviser before making decisions.

This article is general information only and not financial advice.

About This Pension Calculator

Use this pension calculator to get an instant, accurate estimate. The figures follow official GOV.UK guidance and every rate and threshold is kept up to date for 2026. Adjust the inputs above to match your situation, or browse all our calculators to plan your next step.