UK Retirement Calculator
Project your pension pot and retirement income, including the UK State Pension.
How the UK Retirement Calculator Works
Our UK retirement calculator projects how much your pension pot will be worth when you retire, based on your current age, retirement age, current savings, monthly contributions, and expected investment returns. It also factors in the UK State Pension to give you a complete picture of your retirement income.
How Pension Growth Is Calculated
The calculator compounds your current pension pot and monthly contributions at your expected annual return rate until your retirement age:
Balance = (Previous Balance × (1 + r)) + (Monthly Contribution × 12)
Where r is the annual return rate as a decimal (e.g., 6% = 0.06).
The UK State Pension
The new State Pension for 2024/25 is £221.20 per week (£11,502 per year) for those with a full National Insurance record (35 years). You need at least 10 years of contributions to receive any State Pension. The State Pension age is currently 66, rising to 67 between 2026 and 2028, and to 68 by 2046.
You can check your State Pension forecast at gov.uk/check-state-pension. This calculator lets you include the full State Pension, a partial amount, or exclude it entirely.
Pension Tax Relief
Contributions to UK pensions receive tax relief at your marginal rate:
- Basic rate (20%): For every £80 you contribute, the government adds £20, making £100 in your pension.
- Higher rate (40%): You can claim a further 20% relief via self-assessment, meaning £60 costs you £100 in your pension.
- Additional rate (45%): You can claim a further 25% relief, meaning £55 costs you £100 in your pension.
The annual allowance for pension contributions is £60,000 for 2024/25. Contributions above this limit may trigger a tax charge. This calculator uses your net contribution amount — if you benefit from tax relief, your effective contribution is higher than what you pay.
The 4% Withdrawal Rule
The 4% rule suggests you can withdraw 4% of your pension pot in the first year of retirement, then adjust for inflation, with a high probability of the pot lasting 30 years. In the UK, this is often combined with the State Pension — if the State Pension covers your essential expenses, you can withdraw a lower percentage from your pot for discretionary spending, making it last longer.
Tax-Free Cash at Retirement
From age 55 (rising to 57 in 2028), you can access your personal and workplace pensions. You can take 25% of your pension pot as a tax-free lump sum. The remaining 75% is taxed as income when withdrawn, though you also have the Personal Allowance (£12,570 tax-free) in retirement. Many retirees use a combination of tax-free cash, pension income, and State Pension to minimise their tax bill.
ISA vs Pension for Retirement Saving
Both ISAs and pensions are valuable retirement savings vehicles, but they work differently:
- Pension: Tax relief on contributions (free money from the government), but taxed on withdrawal (except the 25% tax-free lump sum). Locked until age 55/57.
- ISA: No tax relief on contributions, but all withdrawals are completely tax-free. Accessible at any age, making ISAs more flexible.
Many UK savers use both — pensions for the tax relief and employer matching, and ISAs for tax-free flexibility. The ISA allowance is £20,000 per year for 2024/25.
How Much Should You Save for Retirement?
A common rule of thumb is to save 12–15% of your gross income for retirement from your 20s onwards, including employer contributions. If you start later, you'll need to save a higher percentage. Other guidelines include aiming for a pension pot of 10–16 times your final salary by retirement age.
Frequently Asked Questions
The full new State Pension for 2024/25 is £221.20 per week, or £11,502 per year. You need at least 10 years of National Insurance contributions to get any State Pension, and 35 years to get the full amount. The actual amount you receive depends on your National Insurance record.
A SIPP (Self-Invested Personal Pension) is a personal pension that gives you control over how your retirement savings are invested. You can hold shares, funds, bonds, and other investments. Contributions receive tax relief at your marginal rate — 20% basic rate is added automatically, and higher/additional rate taxpayers can claim further relief. The annual allowance is £60,000 for 2024/25.
The ISA allowance for 2024/25 is £20,000 per person. You can split this across Cash ISAs, Stocks and Shares ISAs, and Lifetime ISAs (which have a £4,000 sub-limit). ISA returns are tax-free — no income tax on dividends or interest, and no capital gains tax on growth.
You can access your personal and workplace pensions from age 55 (rising to 57 in 2028). You can take 25% of your pension pot as a tax-free lump sum, with the remaining 75% taxed as income when withdrawn. The State Pension is available from age 66 (rising to 67 between 2026 and 2028, and to 68 by 2046).