About the UK Pension Calculator
This UK pension calculator projects how your workplace or personal pension could grow by the time you retire. Enter your salary, the percentages you and your employer pay, your current pot and an expected investment return, and it adds up contributions year by year — including the tax relief the government adds — after deducting annual charges.
It suits employees in auto-enrolment schemes, people deciding whether to raise their contribution, and higher-rate taxpayers who want to see the real cost of saving. Under auto-enrolment the legal minimum is 8% of qualifying earnings (at least 3% from the employer); for 2026/27 qualifying earnings are pay between £6,240 and £50,270 — the Department for Work and Pensions kept these thresholds at their 2025/26 levels, as published by The Pensions Regulator. Many employers instead calculate contributions on your full salary, so you can choose either basis.
Tax relief means a contribution costs you less than its value: a basic-rate taxpayer pays £80 for each £100 that goes into the pension, a higher-rate taxpayer effectively £60. Scottish taxpayers can pick their 21%, 42%, 45% or 48% band. The projection assumes relief at source, applies your chosen rate to your whole contribution (in reality higher-rate relief only covers the part matched by income taxed at that rate), pays contributions at the end of each year, grows salary by the rate you set, and keeps the qualifying earnings band frozen at its 2026/27 level in later years. Non-taxpayers get 20% relief on contributions up to their earnings (or £3,600 gross if higher); because contributions here are a share of salary they never exceed that cap. The State Pension is not included; your tax-free lump sum is normally 25% of the pot, capped by the £268,275 lump sum allowance.
With the default inputs, the projected pension pot is £217,348.44. Change any value above to recalculate instantly.
How to use the uk pension calculator
- 1Enter your salary and the contribution percentages from your payslip or scheme booklet.
- 2Choose whether contributions are based on qualifying earnings or your full salary.
- 3Enter your current pot and select your income tax band.
- 4Set salary growth, investment return, charges and years to retirement.
- 5Review the projected pot, your true cost and the tax-free lump sum.
Formula and method
Each year the calculator works out pensionable pay — either qualifying earnings (salary between the lower and upper limits) or full salary — and applies your gross contribution rate e and the employer rate E. Your gross contribution already includes tax relief: under relief at source your provider claims 20% from HMRC and higher or additional-rate taxpayers reclaim the rest through Self Assessment, so your true cost is the gross amount times one minus your tax rate. As a simplification the chosen rate is applied to the whole contribution; Scottish bands (21%, 42%, 45%, 48%) are available, and a 19% starter-rate taxpayer still gets the full 20%.
The pot grows at the expected return r minus annual charges c, with contributions added at the end of each year. Salary rises by your growth rate while the qualifying earnings band stays frozen. The tax-free lump sum is 25% of the pot, limited to the £268,275 lump sum allowance.
- S
- Annual salary
- e
- Your gross contribution rate
- E
- Employer contribution rate
- r
- Expected investment return
- c
- Annual charges
Worked examples
Auto-enrolment on £35,000, 5% + 3%, 30 years
Qualifying earnings in year one are £35,000 − £6,240 = £28,760, so 5% is £1,438 (costing you £95.87 a month after relief) and your employer adds £862.80. With 2% pay rises and 4.5% net growth over 30 years, the pot reaches about £217,350, of which about £54,340 could be taken tax-free.
Higher-rate taxpayer, 8% + 5% of full salary
Paying 8% of £60,000 puts £4,800 a year into the pension but costs a higher-rate taxpayer only £2,880 (£240 a month) after 40% relief. With £3,000 a year from the employer and 5.5% net growth, £50,000 grows to about £417,860 in 20 years.
Scottish higher-rate taxpayer, 5% + 5% of £45,000
A £2,250 gross contribution (5% of £45,000) costs a Scottish higher-rate taxpayer £1,305 a year (£108.75 a month) after 42% relief — 20% added by the provider and 22% reclaimed through Self Assessment. With £2,250 a year from the employer and 4.5% net growth, the pot reaches about £55,300 after 10 years.
Frequently asked questions
What is the minimum workplace pension contribution in the UK?+
Under auto-enrolment the minimum is 8% of qualifying earnings: at least 3% from your employer and 5% from you, which includes 1% tax relief. For 2026/27 qualifying earnings are between £6,240 and £50,270.
How does pension tax relief work?+
Contributions get relief at your highest rate of income tax. With relief at source your provider adds 20% automatically and higher or additional-rate taxpayers claim the extra 20% or 25% through Self Assessment. Net pay schemes deduct contributions before tax, giving full relief automatically.
How much can I pay into a pension each year?+
The annual allowance is £60,000 of total contributions (yours, your employer’s and tax relief), limited to 100% of your earnings for tax relief. It tapers down for very high earners and you can carry forward unused allowance from the previous three years.
How much of my pension can I take tax-free?+
Usually 25% of your pot, up to the lump sum allowance of £268,275 across all your pensions. The rest is taxed as income when withdrawn. Most people can access private pensions from 55, rising to 57 from April 2028.
Does this include the State Pension?+
No. This calculator only projects your workplace or personal pension pot. The new State Pension is paid on top if you have enough National Insurance qualifying years — check your forecast on GOV.UK.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.