Pension Calculator
Calculate pension pot growth with employer and employee contributions, expected growth rate and projected retirement income
Projected Retirement Pot
At Age 67
£733,393
Total Contributions
£197,760
Growth
£485,633
In 32 years, with monthly contributions of £500 plus 3% employer match at 5% annual growth.
What Your Pension Pot Could Be Worth at Retirement
The calculator runs compound growth on your current pot plus monthly contributions over the years to retirement. £50,000 today plus £500/month contributions plus a 3% employer match (so £515 effective) at 5% growth across 32 years (age 35 to 67) projects to roughly £710,000 at retirement. Of that, £247,500 is your contributions, £100,500 is employer top-up, and the remaining £362,000 is investment growth.
The growth rate assumption matters more than people realise. Drop the rate from 5% to 4% and the pot falls to about £580,000 - over £130,000 less for nothing more than one percentage point. UK workplace pensions in default funds typically aim for 4% to 6% real growth, but past returns are not future returns. Stress-test your number using 3%, 5% and 7% to see the range. The [Compound Interest Calculator](/compound-interest-calculator) shows the same maths in non-pension form if you want to see why the growth assumption is so sensitive.
How Much You Actually Need at Retirement
The Pensions and Lifetime Savings Association publishes annual estimates: a single person needs about £14,400/year for a Minimum standard, £31,300 for Moderate, and £43,100 for Comfortable retirement (2024 figures). Couples can share costs and need less per person. A common rule of thumb is to multiply your desired annual income by 25 - so a Moderate retirement needs about £780,000 in pot terms, plus the £11,973/year State Pension covering some of the gap.
Drawdown at the standard 4% safe withdrawal rate from a £710,000 pot gives £28,400/year inflation-adjusted, plus the State Pension on top. That is in the Moderate band but not Comfortable. To hit Comfortable you would need either higher contributions earlier, a longer working life, or genuinely strong investment returns. The single largest lever is starting age: a 25-year-old contributing £200/month with 3% employer match across 42 years often beats a 45-year-old contributing £600/month across 22 years, even though the older saver pays in twice as much money. Compounding does the rest.
Frequently Asked Questions
What's the minimum I should contribute?
Auto-enrolment requires a total of 8% (3% employer, 5% employee) on qualifying earnings between £6,240 and £50,270. For someone earning £35,000 that is roughly £190/month going into the pot. Most retirement modelling shows 8% is too low to hit the PLSA Moderate standard - you need 12% to 15% across a working life to be on track. If your employer matches above 3%, taking the full match is usually the highest-return decision in personal finance.
Should I worry about pension lifetime allowance?
The lifetime allowance was abolished in April 2024. There is no longer a maximum pot you can build up tax-favourably. The annual allowance still exists - £60,000 of contributions per tax year, tapered down for high earners. A new £268,275 cap applies to the 25% tax-free lump sum at retirement, which limits the immediate cash you can take but does not limit the pot growth itself.
What growth rate should I assume?
4% to 5% net of fees and inflation for a default workplace pension fund is reasonable for long-term planning. Higher-risk equity-heavy funds have averaged 6% to 7% over very long periods but with substantial year-to-year swings. Lower-risk lifestyle funds (which de-risk as you approach retirement) often run at 3% to 4%. Check your pension provider's projection tool for fund-specific assumptions.
Does the calculator account for inflation?
The basic calculator shows nominal pot value at retirement. To get the real (inflation-adjusted) value, subtract about 2% to 3% from your growth rate before running the projection. So a 5% nominal growth assumption becomes a 2% real growth assumption - and the £710,000 nominal pot from the example would represent about £370,000 of today's spending power after 32 years of 3% inflation. This is why the gap between contribution amount and pot size is partly an illusion.