Find out whether your pension pot can support your desired retirement income — including State Pension and other sources.
Note: This calculator does not account for investment growth, inflation, or tax. It is intended for indicative planning only. Speak to a regulated financial adviser (IFA) for personalised pension advice.
The Pensions and Lifetime Savings Association (PLSA) Retirement Living Standards suggest a 'moderate' retirement for a single person requires about £31,300 per year and a 'comfortable' retirement requires about £43,100 per year (2024/25 figures). Couples need more. Your actual needs depend on housing costs, lifestyle, health and location.
The 4% rule (or safe withdrawal rate) suggests you can withdraw 4% of your pension pot in year one, then adjust for inflation each year, with a high probability of not running out of money over a 30-year retirement. For example, a pot of £300,000 would support around £12,000 per year. This rule originated in US research and some UK advisers suggest 3–3.5% for UK retirees.
The full new State Pension is £11,502.40 per year (2024/25 tax year, £221.20 per week). You need 35 qualifying National Insurance years for the full amount and at least 10 years for any State Pension. You can check your State Pension forecast at gov.uk/check-state-pension.
Yes. Most people can take up to 25% of their defined contribution pension as a tax-free lump sum (known as the Pension Commencement Lump Sum or PCLS). From April 2024, the maximum tax-free amount is capped at £268,275 (the former Lifetime Allowance). The remaining 75% is taxed as income when withdrawn.
A safe withdrawal rate is the percentage of your pension pot you can withdraw annually without running out of money. While the US-derived 4% rule is widely cited, UK financial planners often recommend 3% to 3.5% to account for UK annuity rates, different market conditions and longer life expectancies. Your own safe rate depends on your pot size, age, other income sources and investment mix.