🇬🇧 UK Financial Tools · 2026/27

UK Pension Pot Calculator
project your retirement fund

See how much your pension could be worth at retirement — and what income it could provide using the 4% rule, including State Pension.

✓ Defined contribution pensions✓ 4% drawdown income estimate✓ State Pension included✓ Updated for 2026/27
£
£
£
6.0%
After charges. Typical diversified fund: 5–7%.
Pension Pot at Retirement
£—
Years to retirement—
Total you contribute—
Total employer contributes—
Investment growth—
Estimated retirement income
Drawdown (4% rule/yr)—
State Pension—
Total annual income—

How this calculator works

Your current pension pot and future contributions are projected forward using compound growth at your chosen annual rate. The calculator assumes contributions are made monthly and that growth is applied monthly (equivalent to monthly compounding). The final pot value is the sum of your current pot grown forward, plus the future value of all monthly contributions.

The 4% rule

The 4% rule is a widely-used retirement planning guideline: withdrawing 4% of your pot per year is considered sustainable for a 30-year retirement, as historical market returns mean the portfolio continues to grow despite withdrawals. For example, a £400,000 pot provides £16,000/year in drawdown income. This is a starting point — actual withdrawal rates should be tailored with a financial adviser.

State Pension 2026/27

The full new State Pension is £221.20 per week (£11,502/year) for 2026/27. You need at least 35 qualifying years of National Insurance contributions or credits to receive the full amount, and at least 10 qualifying years to receive any State Pension. You can check your forecast and NI record at gov.uk/check-state-pension.

Annual Allowance

The pension Annual Allowance for 2026/27 is £60,000 (or 100% of your earnings, whichever is lower). High earners above £260,000 may have a tapered allowance. Contributions above the allowance are subject to a tax charge. If you have unused allowance from the previous three tax years, you can carry it forward.

UK Pension Pot Calculator 2026

This calculator projects the value of your defined contribution pension pot at retirement, based on your current pot, monthly contributions (yours and your employer's), expected growth rate and years to retirement. It also estimates the retirement income your pot could provide using the 4% drawdown rule.

Auto-enrolment minimum contributions 2026/27

Contributor Minimum contribution Based on
Employee 5% (incl. tax relief) Qualifying earnings
Employer 3% Qualifying earnings
Total 8% Qualifying earnings

Qualifying earnings for 2026/27 are between £6,240 and £50,270. Many employers contribute more than the minimum, and increasing your own contributions — especially via salary sacrifice — is one of the most tax-efficient financial decisions available.

Frequently asked questions

A common rule of thumb is to have a pension pot equal to 3× your annual salary by age 40. On a £40,000 salary, that's around £120,000. However, this varies significantly based on when you want to retire and what income you need.
The pension Annual Allowance is £60,000 for most people in 2026/27, or 100% of your annual earnings if lower. High earners above £260,000 adjusted income may have a tapered annual allowance as low as £10,000.
The minimum pension access age is currently 55, rising to 57 in 2028. You can take up to 25% of your pot as a tax-free lump sum. Withdrawals above the tax-free amount are subject to income tax.
Salary sacrifice reduces your gross salary by your pension contribution before tax and NI are calculated. This saves you both income tax and National Insurance on the contributed amount — typically 28% for basic rate taxpayers and 42% for higher rate — making it the most efficient way to save into a pension.
You can take up to 25% of your defined contribution pension as a tax-free lump sum (capped at £268,275 as the Lump Sum Allowance). The remaining withdrawals are taxed as income in the year you take them. Careful planning of withdrawal amounts can minimise your tax bill in retirement.