Pension Pot Calculator UK 2025
Calculate how much your pension pot will be worth at retirement - nominal and inflation-adjusted values with year-by-year projections.
Last updated: February 2026 | 2025/26 figures
Pension Pot Growth Calculator
Enter your details to see your projected pension pot at retirement, including inflation-adjusted values and income estimates.
How Much Pension Pot Will You Have? A Complete UK Guide
Understanding how your pension pot grows over time is one of the most important aspects of retirement planning. Whether you are 25 and just starting out, or 50 and wondering if you are on track, this pension pot calculator gives you a clear picture of your projected wealth at retirement - both in tomorrow's pounds and in today's purchasing power.
What Is a Pension Pot?
A pension pot is the accumulated value of all contributions made into a defined contribution (DC) pension scheme, along with investment returns earned over time. Unlike a defined benefit (DB) or final salary pension - which promises a set income based on your earnings history - a DC pension pot's value depends on three factors:
- Total contributions: Your payments, employer contributions, and government tax relief combined
- Investment growth: Returns from the funds your money is invested in (typically diversified multi-asset funds)
- Time: The longer your money remains invested, the more compound growth accelerates your pot
Most UK workers now save into a DC pension through auto-enrolment. As of 2025, over 10 million workers have been auto-enrolled since the programme launched in 2012.
PLSA Retirement Living Standards 2024
The Pensions and Lifetime Savings Association (PLSA) publishes annual Retirement Living Standards that define three levels of retirement comfort. These are the most widely used benchmarks for UK retirement planning:
| Lifestyle | Single (£/yr) | Couple (£/yr) | Pot Needed (4% rule) | Net of State Pension |
|---|---|---|---|---|
| Minimum | £14,400 | £22,400 | £360,000 | £72,000 (pot £72k) |
| Moderate | £31,300 | £43,100 | £782,500 | £494,950 pot |
| Comfortable | £43,100 | £59,000 | £1,077,500 | £789,950 pot |
State Pension (2025/26): £11,502/year. Pot figures are after subtracting State Pension income. Couples receive two State Pensions if both qualify.
The State Pension: Your Retirement Foundation
The full new State Pension for 2025/26 is £221.20 per week (£11,502.40 per year). This provides the base income above which your private pension pot needs to supplement. To receive the full amount you need 35 qualifying National Insurance years. Check your State Pension forecast at gov.uk/check-state-pension.
State Pension age is currently 66 and rising to 67 between 2026-2028 for those born between April 1960 and April 1977, and to 68 for those born after April 1977 (review ongoing).
How Pension Pot Growth Works: Compound Interest
Your pension pot grows through compound interest - earning returns on your returns. This creates an exponential growth curve rather than a straight line. The formula is:
Where r = monthly growth rate, n = months to retirement
Consider the difference starting age makes for someone contributing £320/month (combined) at 5% growth:
| Start Age | Retirement Age | Years | Estimated Pot |
|---|---|---|---|
| 25 | 67 | 42 | £538,000 |
| 30 | 67 | 37 | £403,000 |
| 35 | 67 | 32 | £295,000 |
| 40 | 67 | 27 | £210,000 |
| 45 | 67 | 22 | £143,000 |
Starting 10 years earlier (age 25 vs 35) nearly doubles the final pot - without any additional monthly contributions. This illustrates why pension experts consistently advise starting as early as possible.
Nominal vs Real (Inflation-Adjusted) Pension Values
Your calculator shows two key figures: the nominal value (what you will see on your statement) and the real value (what that money buys in today's prices). With 2.5% average inflation over 30 years, £500,000 nominal is worth approximately £239,000 in today's purchasing power - a 52% reduction.
The formula to deflate: Real Value = Nominal Value ÷ (1 + inflation)^years
This is why retirement planning must always consider inflation. A pension pot that looks generous in nominal terms may deliver a much more modest lifestyle than expected if inflation has eroded its real value.
The 25% Tax-Free Lump Sum
From age 55 (rising to 57 in April 2028), you can take 25% of your pension pot as a Pension Commencement Lump Sum (PCLS) - completely tax-free. For 2025/26, the maximum tax-free cash is capped at £268,275 (the Lump Sum Allowance, which replaced the Lifetime Allowance in April 2024).
This means if your pot is £600,000, you can take £150,000 (25%) tax-free. If your pot is £1,200,000, the tax-free amount is still capped at £268,275, not £300,000. The remainder after the lump sum stays in drawdown and is taxed as income when withdrawn.
You do not have to take the full 25% upfront. With Uncrystallised Fund Pension Lump Sum (UFPLS), each withdrawal is 25% tax-free and 75% taxable.
Pension Types: DC vs DB vs SIPP
Defined Contribution (DC): The most common type today. You and your employer contribute to a personal pot invested in funds. The final value is unknown and depends on market performance. Examples include workplace auto-enrolment schemes (Nest, The People's Pension, Smart Pension) and personal pensions.
Defined Benefit (DB) / Final Salary: Provides a guaranteed income based on your salary and years of service. The formula is typically: Annual Pension = (Years of service × Accrual rate × Final salary). For example, 30 years at 1/60 accrual on £40,000 = £20,000/year for life. DB pensions are increasingly rare in the private sector but common in public services (NHS, civil service, teaching, police, armed forces).
Self-Invested Personal Pension (SIPP): A DC pension with wider investment choice including individual stocks, ETFs, commercial property, investment trusts, and bonds. Popular with self-employed individuals and those wanting more control. Providers include Hargreaves Lansdown, Vanguard, AJ Bell, Interactive Investor, and Fidelity.
Contribution Limits and Auto-Enrolment 2025/26
Minimum auto-enrolment contributions for 2025/26:
- Employee minimum: 5% of qualifying earnings (£6,240 to £50,270)
- Employer minimum: 3% of qualifying earnings
- Total minimum: 8% of qualifying earnings
The annual allowance for 2025/26 is £60,000 (or 100% of earnings, whichever is lower). You can carry forward unused allowance from the previous 3 tax years. Tax relief is available at your marginal rate on personal contributions.
The FIRE Movement and Pension Planning
Financial Independence, Retire Early (FIRE) adherents typically aim to retire in their 40s or 50s, well before traditional retirement age. The core principle is the 4% safe withdrawal rate: if you can live on 4% of your portfolio annually, your investments should sustain you indefinitely (based on historical data).
In the UK, the challenge is that pensions cannot be accessed until age 55 (57 from 2028). FIRE practitioners bridge this gap with ISAs (£20,000 annual allowance), general investment accounts (GIAs), and property income. SIPPs are then used for late-retirement income from 57 onwards.
The UK FIRE community is active on platforms like Reddit (r/FIREUK), MoneySavingExpert forums, and through resources like the Meaningful Money podcast. Tools like Pensions Dashboards Programme (launching 2025) will allow FIRE planners to consolidate all pension information in one place.
MoneyHelper and the Pensions Dashboards Programme
MoneyHelper (run by the Money and Pensions Service) offers free, impartial guidance on pension planning. Their pension calculator and mid-life MOT tool are valuable complements to this calculator. Visit moneyhelper.org.uk for free pension guidance.
The Pensions Dashboards Programme, expected to launch in 2025-2026, will allow all UK pension savers to view all their pension pots (including State Pension) in one place online. This will make tracking multiple pension pots from different employers significantly easier.
Frequently Asked Questions
How much pension pot do I need to retire comfortably in the UK?
Using PLSA 2024 standards and the 4% rule, a comfortable single-person retirement (£43,100/year) requires approximately £789,950 in private pension (after subtracting the full State Pension of £11,502/year). A moderate retirement (£31,300/year) needs around £494,950 in private pension savings.
What is the difference between nominal and real pension pot values?
The nominal value is the raw future figure on your pension statement. The real value adjusts for inflation, showing what that money is worth in today's purchasing power. At 2.5% inflation over 30 years, £500,000 nominal equals roughly £239,000 in today's money - a 52% reduction in purchasing power.
How does the 25% tax-free lump sum work?
From age 55 (57 from April 2028), you can take 25% of your pension pot as a completely tax-free lump sum. The maximum is capped at £268,275 for 2025/26. The remaining 75% stays in drawdown and is taxed as income when withdrawn.
What is the 4% rule for pension drawdown?
The 4% rule suggests withdrawing 4% of your pension pot in year one of retirement, then adjusting for inflation each year. Based on William Bengen's 1994 research, this rate has historically sustained a portfolio for 30+ years. For 35-40 year retirements, a more conservative 3-3.5% is recommended.
What are the pension contribution limits for 2025/26?
The annual allowance is £60,000 (or 100% of earnings if lower). Minimum auto-enrolment is 8% total (5% employee + 3% employer) of qualifying earnings between £6,240 and £50,270. The Lifetime Allowance was abolished from April 2024, though the tax-free cash cap is £268,275.
What types of pension can I contribute to in the UK?
Main UK pension types: Defined Contribution (DC) pensions (workplace and personal), Defined Benefit (DB)/final salary pensions, SIPPs (self-invested personal pensions), and the State Pension. Most workers today use DC pensions through auto-enrolment. SIPPs offer wider investment choice for self-employed and experienced investors.
What is the FIRE movement?
FIRE (Financial Independence, Retire Early) is a movement focused on saving 50-70% of income and investing in low-cost index funds to retire decades early. UK FIRE practitioners use ISAs to bridge the gap before pension access age (55, rising to 57). The 4% rule is central to FIRE planning - accumulate 25x annual expenses.