How your pension pot grows
A pension is a long-term investment. Each contribution you and your employer make is invested and grows over time, and because the growth compounds, starting earlier makes a big difference. This calculator projects your pot at retirement from your current age, current pot, monthly contributions and an assumed growth rate.
To give a rough idea of retirement income it applies a 4% annual withdrawal to the projected pot — a common rule of thumb — and can add the full new State Pension of £12,548 a year (2026/27). Remember that up to 25% of a pension pot can normally be taken tax-free.
Frequently asked questions
How much will my pension be worth at retirement?
It depends on your contributions, how long you save and investment growth. For example, a £20,000 pot plus £350 a month at 5% growth over 32 years could reach around £430,000. Use the tool to model your own figures.
What is the full State Pension for 2026/27?
The full new State Pension is £241.30 a week, or about £12,548 a year, for those who reach State Pension age with enough qualifying years.
How much should I pay into a pension?
A common guideline is to save a percentage of your salary equal to half your age when you started. Employer contributions and tax relief boost what you put in.
What is the 4% rule?
It's a rule of thumb suggesting you can withdraw about 4% of your pot each year in retirement. It's a rough guide, not a guarantee.
Can I take some of my pension tax-free?
Normally you can take up to 25% of your pension pot tax-free from age 55 (rising to 57 from 2028), with the rest taxed as income.