● Retirement projection · UK

Pension Calculator

Q: How much should I pay into my pension?

A common rule of thumb is to contribute a percentage of your salary equal to half your age when you started — so 12% in your mid-twenties. Auto-enrolment minimums are 8% in total (5% from you, 3% from your employer), but most people need to save more for a comfortable retirement.

Q: How does pension tax relief work?

For every £80 a basic-rate taxpayer pays into a pension, the government adds £20 in tax relief, making it £100. Higher-rate taxpayers can claim a further 20% through their tax return, and additional-rate taxpayers 25%.

Q: What is the minimum auto-enrolment pension contribution?

The total minimum is 8% of qualifying earnings — at least 5% from you and 3% from your employer. Qualifying earnings are the band between £6,240 and £50,270.

See what your workplace or personal pension could grow to by the time you retire. We add your contributions, your employer’s match and basic-rate tax relief, then compound it with investment growth.

🪙 Tax relief included 🏢 Employer match 📈 Projected pot at retirement

Project your pension pot

Defined-contribution pension

Current age

Retirement age

Annual salary

Current pension pot optional

Your contribution (%)

Employer (%)

The hidden boost: pension tax relief

A pension is one of the most tax-efficient ways to save in the UK. When you pay in, the government tops up your contribution with tax relief at your highest rate. For a basic-rate taxpayer, every £80 you contribute becomes £100 in your pot — an instant 25% uplift.

Your tax band	You pay	Pot receives
Basic rate (20%)	£80	£100
Higher rate (40%)	£60*	£100
Additional rate (45%)	£55*	£100

*Higher and additional-rate taxpayers receive 20% relief at source and claim the rest through Self Assessment or by contacting HMRC.

How much should you pay in?

There’s no single right answer, but a few benchmarks help:

Auto-enrolment minimum: 8% of qualifying earnings — 5% from you, 3% from your employer.
The “half your age” rule: contribute a percentage equal to half the age you started saving (e.g. 12% if you began at 24).
Grab the full employer match: if your employer matches up to 6%, contributing less is leaving free money on the table.

Compounding rewards starting early. A 25-year-old paying £200 a month could retire with far more than a 40-year-old paying the same — because the money has 15 extra years to grow.

When can you access your pension?

You can normally take money from a defined-contribution pension from age 55 (rising to 57 from 2028). Usually 25% can be taken tax-free, with the rest taxed as income. The State Pension is separate and is paid from State Pension age — currently 66 and rising.

Pension calculator FAQs

How much should I pay into my pension?

A handy rule is to contribute a percentage equal to half your age when you started saving. Auto-enrolment’s minimum is 8% total (5% you + 3% employer), but most people need to save more for a comfortable retirement.

How does pension tax relief work?

For every £80 a basic-rate taxpayer pays in, the government adds £20, making £100. Higher-rate taxpayers can reclaim a further 20%, and additional-rate taxpayers 25%, through their tax return.

What is the minimum auto-enrolment contribution?

8% of qualifying earnings — at least 5% from you and 3% from your employer. Qualifying earnings are the slice of pay between £6,240 and £50,270.

Is the projection guaranteed?

No. Investment returns vary and aren’t guaranteed, and inflation erodes future spending power. Treat the projected pot as an illustration to guide your saving, not a promise.

Total you contribute	£0
Employer contributions	£0
Tax relief added	£0
Investment growth	£0