Pensions Calculator

This tool projects the future value of a Defined Contribution (DC) pension pot — the kind built up through workplace auto-enrolment or a personal pension such as a SIPP. Enter your current age, existing pot, and ongoing contributions, and it forecasts two figures: the nominal value (the raw pound figure on a future statement) and the inflation-adjusted value (what that pot can buy in today's money). It also applies the widely cited 4% rule to suggest a sustainable annual drawdown income.

It does not add the UK State Pension, calculate tax on withdrawals, or value a final-salary (Defined Benefit) scheme — those are separate and explained under assumptions below.

• Employees checking whether their auto-enrolment contributions are on track for a comfortable retirement.
• Self-employed people who have no employer match and must fund a SIPP themselves.
• Mid-career savers weighing up whether to increase contributions or delay retirement.
• Younger savers wanting to see how decades of compound growth turn small, regular payments into a meaningful pot.

Gather a few figures first so the projection is realistic rather than a guess:

• Your latest pension statement — the current pot value, including any old workplace pensions you may have kept with former employers.
• The combined employee plus employer contribution if you're in a workplace scheme (auto-enrolment minimums are 5% employee / 3% employer of qualifying earnings).
• The age you realistically expect to stop working and start drawing the pot.
• A sensible expected return — typically 4–6% for a balanced pension fund, lower for cash-heavy funds.

• Current Age — your age today; together with Retirement Age it sets how long your money has to grow.
• Retirement Age — the age at which you stop contributing and start drawing. Remember the normal minimum pension age is 55, rising to 57 in 2028.
• Current Pension Balance — the total across all your DC pots today, in £.
• Contribution Amount — the regular amount paid in. For workplace pensions, include both your deduction and your employer's contribution — that "free money" matters.
• Contribution Frequency — how often that amount goes in: monthly, quarterly, or annually.
• Expected Return (%) — the annualised investment growth you assume, before charges. Pension default funds have returned roughly 5–7% over long periods, but future returns are not guaranteed.
• Inflation Rate (%) — used to convert the nominal pot into today's purchasing power. The Bank of England target is 2%.

The Nominal Value is the headline number you'd see on a statement at retirement — useful, but misleading on its own because money loses purchasing power over time. The Inflation Adjusted figure is the one to plan with: it tells you what that pot is worth in today's terms. The Estimated Annual Income applies the 4% rule to the inflation-adjusted pot, giving a rough sustainable first-year withdrawal. Add your expected State Pension (around £11,500/year for the full new State Pension in 2025/26) to this figure for a fuller retirement income picture. The pie chart splits your pot into money you paid in versus growth the markets generated — over long horizons, growth usually dominates, which is why starting early matters so much.

A 35-year-old planning to retire at 65, with a £25,000 pot, £400 combined monthly contributions, 6% expected return, and 2.5% inflation.

• Current Pension Pot: £25,000
• Monthly Contribution: £400 (Combined employee + employer)
• Expected Return: 6%
• Inflation Rate: 2.5%

By age 65, their nominal pension pot would be over £540,000. However, adjusted for 2.5% inflation, the purchasing power of that pot in today's money is roughly £260,000. Using the 4% rule, this pot would generate an annual income of about £10,400 in today's money, which would be added to their State Pension.

Key assumptions

• Defined Contribution (DC) pension only — not Defined Benefit / final salary.
• A smooth, constant investment return every year. Real markets are volatile, with up and down years.
• Constant inflation rate throughout.
• Sustainable drawdown modelled at a 4% initial withdrawal rate.
• Contributions continue unchanged until the retirement age you set.
• Pension Annual Allowance: £60,000 or 100% of earnings (2026/27). Lifetime Allowance abolished April 2024.

What is not included

• UK State Pension (full new State Pension: approx. £11,502/year for 2025/26).
• Tax-free cash lump sum (Pension Commencement Lump Sum — up to £268,275).
• Income tax on pension withdrawals in retirement.
• Annuity pricing or guarantees.
• Pension fund charges, which reduce real returns.

• Looking only at the nominal figure. A £1,000,000 pot in 30 years buys far less than £1,000,000 buys today. Always plan with the inflation-adjusted number.
• Forgetting employer contributions. Entering only your own 5% understates the pot by a third or more. Always include the employer match.
• Opting out of auto-enrolment. You forfeit employer contributions and government tax relief — effectively a pay cut.
• Underestimating how long you'll live. Many plan for a 15-year retirement; average life expectancies mean your pot may need to last 25–30 years.

• Log in to your pension provider's portal and confirm your current pot value and contribution rate — old pots can be consolidated, though check for exit fees first.
• If your projection falls short, the cheapest lever is usually increasing your contribution by 1–2% of salary, ideally via salary sacrifice if your employer offers it.
• Get a free State Pension forecast from the GOV.UK Check State Pension service and add it to the income shown here.
• For a full retirement plan, consider speaking with a regulated financial adviser — find one at MoneyHelper.

• Compound Interest Calculator: Explore the maths behind your pension's growth in more detail.
• UK Salary Calculator: See how increasing pension contributions affects your current take-home pay via tax relief.
• Pension Planning Guide: Comprehensive strategies for a secure retirement.
• Workplace Pensions Guide: Understand auto-enrolment, employer contributions, and tax relief.

SmartMoneyTools checks statutory rates and thresholds against official government publications. Results are estimates for educational purposes and may not reflect every individual circumstance. Last reviewed: 11 September 2026.