UK Pension Calculator 2025/26
Estimate your pension pot at retirement and the monthly income it could provide. Factors in your contributions, employer matching, investment growth, inflation and the State Pension — so you can see clearly whether you are on track.
Enter your age, contributions and retirement target, then click Calculate to see your projected retirement income.
2025/26 State Pension & auto-enrolment at a glance
New State Pension 2025/26
| Qualifying NI years | Weekly amount |
|---|---|
| 10 years (minimum) | £63.20 |
| 20 years | £126.40 |
| 30 years | £189.60 |
| 35 years (full) | £221.20 |
Full new State Pension: £11,502.40/yr (£221.20/week). Requires 35 qualifying NI years.
Auto-enrolment minimum contributions
| Contributor | Minimum |
|---|---|
| Employee | 5% of qualifying earnings |
| Employer | 3% of qualifying earnings |
| Total minimum | 8% combined |
Qualifying earnings band 2025/26: £6,240 – £50,270. Many employers match contributions beyond the minimum.
How Does a UK Workplace Pension Work?
A workplace pension is a long-term savings scheme set up by your employer. Each month, contributions are deducted from your salary before or after tax and invested on your behalf — typically in a diversified fund. Over time, these contributions compound alongside investment growth to build a pot that you can draw on in retirement. In the UK, workplace pensions come in two main forms: defined contribution (DC), where your retirement income depends on how much has been saved and how the investments have performed; and defined benefit (DB), where your employer guarantees a specific income in retirement based on your salary and years of service.
Most people starting employment today will be enrolled in a defined contribution scheme. Your pot grows through three sources: your own contributions, your employer's contributions, and investment returns. Tax relief from HMRC further boosts contributions — a basic-rate taxpayer effectively only contributes 80p for every £1 that goes into their pension, making pensions one of the most tax-efficient savings vehicles available.
What is Auto-Enrolment?
Auto-enrolment was introduced in 2012 to tackle the UK's retirement savings gap. Employers are legally required to automatically enrol eligible workers — those aged 22 to State Pension age, earning more than £10,000 per year — into a qualifying workplace pension. Workers can opt out, but are automatically re-enrolled every three years.
The minimum combined contribution rate is 8% of qualifying earnings (between £6,240 and £50,270 for 2025/26). At least 3% must come from the employer; employees contribute the remaining 5%, which includes tax relief. Many employers offer more generous schemes — some match contributions pound-for-pound up to a higher percentage. Checking whether your employer offers enhanced matching above 3% is one of the most valuable financial checks you can make.
How Much Should I Contribute to My Pension?
A commonly quoted rule of thumb is to contribute half your age as a percentage of your salary when you start saving. If you begin at 30, you should aim to save 15% of your salary (employee plus employer combined). This produces a rough figure that, when combined with the State Pension, tends to support a comfortable retirement. The 8% auto-enrolment minimum is a floor, not a target.
In practice, the right contribution level depends on your desired retirement income, target retirement age, existing pot size, and expected State Pension. Broadly, a pot of 25× your target annual income is required to sustain withdrawals using the 4% rule. On a £30,000 salary, targeting a replacement income of £20,000 in today's money means building a pot of around £500,000 — in addition to the State Pension. Starting early and increasing contributions incrementally (for example, by 1% each year) makes a significant difference thanks to the power of compounding.
What is the State Pension and How Much is It?
The new State Pension is a regular payment from the government when you reach State Pension age (currently 66 for both men and women, rising to 67 between 2026 and 2028). You build entitlement by accumulating qualifying National Insurance years — a year in which you paid, were credited with, or were exempt from NI contributions. You need at least 10 qualifying years to receive any State Pension, and 35 qualifying years for the full amount.
The full new State Pension for 2025/26 is £221.20 per week (£11,502.40 per year), protected by the triple lock which increases it each April by the highest of inflation, earnings growth, or 2.5%. You can check your State Pension forecast and NI record at gov.uk/check-state-pension.
Frequently Asked Questions
How much do I need in my pension to retire?
The amount you need depends on your desired lifestyle and other income sources such as the State Pension. The Pensions and Lifetime Savings Association (PLSA) publishes "Retirement Living Standards" as a benchmark: a single person needs around £14,400/yr for a minimum standard, £31,300/yr for moderate, and £43,100/yr for comfortable. If you want £30,000/yr from your pension pot using the 4% rule, you need a pot of approximately £750,000. Subtracting the full State Pension (£11,502/yr) means you need the pot to provide around £18,500/yr — requiring approximately £462,500.
What is the 4% rule for pension withdrawals?
The 4% rule is a guideline suggesting you can withdraw 4% of your pension pot in your first year of retirement, then adjust that amount for inflation each year, and have a high probability of not running out of money over a 30-year retirement. It originates from US research by William Bengen in 1994 and is widely used as a planning heuristic. A pot of £300,000 therefore supports annual withdrawals of £12,000 (£1,000/month). While helpful, the 4% rule is not guaranteed — actual outcomes depend on investment returns, inflation and how long you live. Some UK financial planners use a more conservative 3.5% withdrawal rate.
How does employer pension contribution work?
Under auto-enrolment, your employer must contribute at least 3% of your qualifying earnings to your pension. This is effectively free money added on top of your salary — the employer contribution does not reduce your take-home pay. Many employers will match contributions above the minimum: for example, matching up to 5% or 6% of salary if you contribute the same amount. Always contribute enough to capture your full employer match — failing to do so is equivalent to turning down part of your salary. The employer contribution is also exempt from National Insurance for both you and your employer.
When can I access my pension in the UK?
The minimum pension access age is currently 55, rising to 57 in April 2028. This applies to defined contribution workplace and personal pensions. The State Pension is payable from State Pension age (currently 66, rising to 67 between 2026 and 2028). From age 55 (or 57 from 2028), you can take up to 25% of your pension pot as a tax-free lump sum, with the remaining 75% subject to income tax when withdrawn. You are not required to take your pension at the minimum access age — leaving it invested for longer allows further compounding.
What is the Lifetime Allowance?
The Lifetime Allowance (LTA) was a cap on the total amount you could save into a pension without incurring additional tax charges. It was set at £1,073,100 from 2021/22, but was abolished entirely from 6 April 2024. There is no longer any limit on how large a pension pot you can build over your lifetime without a tax penalty. The annual allowance (how much you can contribute in a single tax year with full tax relief) remains in place at £60,000 for 2025/26, tapering to £10,000 for those with adjusted income above £260,000.