Bureau of Wealth

Pension Calculator

By the Bureau of Wealth team Updated

This calculator is general information, not financial advice. Check your own figures with the provider or a qualified adviser before acting on them.

Enter your age, pension pot, salary and contribution rates to see what your pension could be worth when you retire, in future pounds and in today's money.

Using 2026/27 rates rates checked 14 September 2026

Used only to illustrate an income. Drawdown income is not guaranteed.

Check the highlighted fields to see your results.

What this calculator assumes

  • Contributions are percentages of your full salary before tax. The amount you pay includes basic rate tax relief, so with relief at source 5% of salary means 4% from your take-home pay and 1% added by the government. If your scheme uses qualifying earnings, your contributions will be lower than this assumes.
  • Your pay rises by the same percentage every year and contributions are paid in 12 equal monthly amounts. Growth is a steady yearly rate after charges. Real investments rise and fall, and the order of good and bad years matters.
  • The tax-free lump sum is 25% of the pot, up to the £268,275 lump sum allowance. The illustrative income is a fixed share of the rest of the pot, before income tax.
  • Tax rules, allowances and the minimum pension age are those in place for 2026/27, plus the rise to 57 on 6 April 2028. Rules can change before you retire.
  • It does not include the State Pension, defined benefit pensions, career breaks or the tax charge for going over your annual allowance.

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How the projection works

The calculator starts with what your pensions are worth now. Each year it works out your salary for that year, after pay rises, and adds your contribution and your employer's as a percentage of it, in 12 monthly amounts. The pot grows every month at the monthly equivalent of the yearly growth rate you enter, which should be after your pension charges.

At your retirement age it shows the pot in future pounds and in today's money, by removing inflation over the same years. It also shows how much of the pot came from money paid in and how much from growth, the tax-free lump sum, and an example yearly income from what is left.

A worked example

You are 35 with £20,000 in pensions and plan to retire at 67. You earn £35,000, pay 5% including tax relief, and your employer pays 3%. With pay rises of 2.5% a year, growth of 5% after charges and inflation of 2.5%, your pot at 67 is about £388,667, or £176,366 in today's money.

Of that, £154,821 is your starting £20,000 plus contributions, and £233,847 is growth. Your tax-free lump sum would be about £97,167. Taking 4% of the remaining pot each year gives about £11,660 before tax, which is £5,291 in today's money.

What makes the biggest difference

Growth and time do most of the work over 32 years. At 4% growth the same plan reaches £318,063; at 6% it reaches £478,289. Retiring at 68 instead of 67 lifts the pot to £414,411. Raising what you pay from 5% to 7% of salary gives £462,009, and so would your employer raising its share from 3% to 5%.

Charges come out of growth, so a 1% yearly charge on a 5% return leaves you with roughly 4%. If your scheme works out contributions on qualifying earnings rather than full salary, the workplace pension contribution calculator shows what actually goes in, so you can enter a realistic percentage here.

Taking money out

You can usually take up to 25% of a pension as a tax-free lump sum, and GOV.UK says the most you can take is £268,275. The rest counts as taxable income when you draw it, alongside the State Pension and any earnings.

The normal minimum pension age is 55 and rises to 57 from 6 April 2028. Some people have a protected pension age, and scheme rules can set a later age. The calculator flags a retirement age below 57.

The withdrawal rate is only an illustration of the income a pot of this size might support. It is not a recommendation or a guarantee, and income from drawdown can fall if investments do badly or you withdraw too much. How you take your pension is a significant decision, so consider getting guidance or advice from a regulated financial adviser first.

Where the State Pension fits

This projection covers only personal and workplace pensions. You may also get the State Pension, which the State Pension calculator can estimate from your National Insurance record.

Frequently asked questions

Does this include tax relief?

Yes. Enter what you pay including tax relief. With relief at source, your provider claims basic rate relief from the government, so £80 from your take-home pay becomes £100 in your pension. Higher rate taxpayers claim the extra relief themselves.

What growth rate should I use?

Use a rate after your pension's charges, and try a lower and a higher one to see the range. Growth is never guaranteed, and the value of investments can fall as well as rise.

How much can I take tax-free?

You can usually take up to 25% of a pension as a tax-free lump sum. The most you can take across your pensions is £268,275, unless you hold a protected allowance.

When can I take money from my pension?

The normal minimum pension age is 55, rising to 57 from 6 April 2028. Your scheme's rules can set a later age, and some people have a protected earlier age.

Why show the pot in today's money?

Prices rise over the decades before you retire, so £388,667 in 32 years will buy far less than it would now. Today's money shows what the pot and the income are worth in current prices, which makes them easier to compare with your spending.

Sources

Figures come from institutions millions of people rely on. How we keep calculators accurate.