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UK Pension Calculator

See how your current pension pot, monthly contributions, UK tax relief and investment growth could add up by the time you retire.

Your pension

35 years old
67
£
£

The amount added to your pot each month, before tax relief.

Higher and additional-rate relief is usually claimed via self assessment.

%

A long-run figure you choose — investments can fall as well as rise.

Estimated pot at 67 Tax relief —
£—
Total you pay in£—
Growth£—
Costs you about £— per month after tax relief
You could take up to £— tax-free (25% of the pot)

Figures use the 2026/27 tax year. Sources: GOV.UK — Pension schemes rates (annual allowance £60,000) · GOV.UK — Tax on private pension (25% tax-free lump sum). Investments can go down as well as up.

How it works

The calculator grows your current pot and monthly contributions at the annual growth you choose (monthly compounding) until your retirement age. It shows the estimated pot, split into what you pay in and growth, your after-tax-relief cost, and the 25% tax-free lump sum you could take at retirement.

Example calculation

For a 35-year-old retiring at 67, with a current pot of £10,000, contributing £250/month gross at 5% growth as a basic-rate taxpayer:

  • Years to retirement: 32
  • Estimated pot at 67: ≈ £285,600
  • Your £250/month actually costs ≈ £200 after 20% tax relief
  • Tax-free lump sum at retirement: up to ≈ £71,400

Example is illustrative. Charges, inflation and the annual allowance are not modelled.

Methodology & formula

The pot is projected with monthly compounding:

Pot = P × (1 + r/12)12t + M × [ (1 + r/12)12t − 1 ] / (r/12)
  • P = current pot
  • M = monthly gross contribution
  • r = annual growth (as a decimal)
  • t = years to retirement (retirement age − current age)

After-tax cost = M × (1 − tax relief rate). Tax-free lump sum = 25% of the pot, capped at the lump sum allowance (£268,275 for 2026/27).

Assumptions: constant growth, contributions from today, no fees, no withdrawals, no inflation adjustment, contributions within the annual allowance (£60,000 for 2026/27). Real returns vary and are not guaranteed.

UK-specific information

  • Tax relief: personal contributions are topped up at your marginal rate — 20% is added automatically (relief at source); 40% and 45% taxpayers claim the extra through self assessment. GOV.UK · 2026/27
  • Annual allowance: you can pay up to £60,000 a year across all pensions (including employer contributions) before an annual allowance charge applies. GOV.UK · 2026/27
  • 25% tax-free: you can usually take up to 25% of your pot tax-free at retirement, capped at the lump sum allowance of £268,275.
  • Workplace pensions: most employees are auto-enrolled — minimum total contribution is 8% of qualifying earnings (£6,240–£50,270), with at least 3% from the employer. GOV.UK · 2026/27
  • Access age: you normally cannot take money from a personal or workplace pension before age 55 (rising to 57 in 2028).

Frequently asked questions

What does the annual allowance mean?
It is the most you can pay into all your pensions in a tax year with tax relief — £60,000 for 2026/27, counting your contributions (gross), employer contributions and tax relief. Above it, an annual allowance charge applies.
How does tax relief work?
Basic-rate relief (20%) is added automatically to personal contributions. So £100 out of your pocket becomes £125 in the pot. Higher (40%) and additional (45%) rate taxpayers can reclaim more via their tax return.
Can I take my whole pension tax-free?
No. You can usually take 25% of the pot tax-free (capped at the lump sum allowance of £268,275). The rest is taxable as income when you withdraw it.
Does this calculator include employer contributions?
No — it models your own contributions only. If your employer matches or adds contributions, add them to the monthly gross figure for a fuller picture.
How much should I save for retirement?
A common rule of thumb is to aim for a pot of 20–25× your desired annual income in retirement. The Retirement calculator shows how much to save each month to close a specific gap.
What is the State Pension?
A government pension paid from State Pension age. The full new State Pension is £241.30 a week for 2026/27 (about £12,548 a year), based on your National Insurance record. It is a base on top of any private pension.

Related calculators

Retirement Calculator · UK Salary Calculator · Investment Return Calculator · ISA Calculator · Home

Sources

  • GOV.UK — Pension schemes rates and allowances: gov.uk (annual allowance, 2026/27)
  • GOV.UK — Tax on your private pension: gov.uk (25% tax-free lump sum, 2026/27)
  • GOV.UK — Your State Pension explained: gov.uk (£241.30/week, 2026/27)

Casvia provides educational calculators and general information. It does not provide personal financial, tax or investment advice. Rules and thresholds can change — always check the latest official guidance.