Pension Calculator
Estimate your pension savings and retirement income
Results are estimates for informational purposes only and do not constitute financial, legal, or medical advice.
Use this free pension calculator to model your retirement savings. The tool has two modes: Retirement savings — calculate how much your monthly contributions will grow by your target retirement age at an assumed annual return; Monthly payout — calculate how much you can withdraw per month from a given pension pot over a set number of years. Suitable for UK personal pensions, SIPPs, workplace pension top-ups, and private retirement savings across Europe and internationally.
Enter your current savings, monthly contribution, expected annual return (4–7% is typical for a diversified long-term portfolio), and target retirement age. For UK users: the full new State Pension is worth up to £11,502 per year (2024/25) — factor this in alongside your private savings target. Results are estimates; actual outcomes depend on market returns, inflation, fund charges, and your country's pension regulations.
Frequently Asked Questions
What is a pension fund calculator?
A pension fund calculator models how your retirement savings grow over time (accumulation phase) and how long they will last when you draw them down (decumulation phase). This tool covers both: the Retirement savings mode calculates your projected pension pot at retirement; the Monthly payout mode calculates a sustainable monthly income from an accumulated fund — useful for modelling SIPP drawdown, annuity comparisons, or any retirement savings pot.
How much pension pot do I need in the UK?
A widely used target is to replace 60–70% of pre-retirement income. For a retirement income of £30,000/year from private savings alone, you would need approximately £600,000–£750,000 (based on the 4% withdrawal rule). However, with the full State Pension of £11,502/year (2024/25), you only need private savings to cover the gap. For a £25,000/year total income, your private target is roughly £13,500/year from savings — requiring a pot of around £300,000–£350,000.
How much should I save each month for retirement?
The standard recommendation is 10–15% of gross income. Under UK auto-enrolment, the minimum combined contribution is 8% (3% employer + 5% employee). A 25-year-old earning £40,000 saving £400/month at 6% annual return could accumulate over £800,000 by age 65. A 35-year-old saving the same amount would accumulate roughly £450,000. Use this calculator to model your specific scenario.
What annual return should I assume for my pension?
Conservative (low-risk portfolio): 3–4% (bonds, cash ISAs, money market funds). Moderate (balanced portfolio): 5–7% (typical for Vanguard LifeStrategy 60/40 or similar). Aggressive (equity-heavy): 8–10% (all-equity funds; S&P 500 historical average ~10% before inflation). Always use net-of-fees return. For the drawdown phase, use a more conservative rate of 3–4% to account for sequence-of-returns risk.
What is the 4% rule for pension drawdown?
The 4% rule states that withdrawing 4% of your portfolio value per year means your savings are unlikely to run out over a 30-year retirement, based on historical market returns. A £500,000 pension pot supports roughly £20,000/year (£1,667/month) in withdrawals. Some UK financial planners recommend a slightly lower 3.5% withdrawal rate in the current environment, giving £17,500/year from £500,000. This tool lets you model any withdrawal amount and see how many years your fund will last.
What is the difference between a SIPP and a workplace pension?
A Self-Invested Personal Pension (SIPP) gives you full control over your investments but requires more active management. A workplace pension (e.g., Nest, LGPS, or your employer's scheme) automatically receives employer contributions — under UK auto-enrolment, employers must contribute at least 3% of qualifying earnings on top of your contributions. Most people should maximise employer pension contributions first (it is effectively free money) before making additional SIPP contributions.
How does the UK State Pension affect my private savings target?
The full new UK State Pension (2024/25) is £221.20/week (£11,502/year). You need 35 qualifying National Insurance years for the full amount, and a minimum of 10 years for any State Pension. This guaranteed income significantly reduces your private savings target. Check your forecast at gov.uk/check-state-pension. If you receive the full State Pension, you only need private savings to cover the gap between £11,502 and your desired total retirement income.
How does inflation affect my pension savings?
At 2% annual inflation, money loses roughly half its purchasing power over 35 years. A target of £30,000/year in today's money requires approximately £60,000/year in nominal terms in 35 years. To account for inflation in this calculator, use a real return: subtract expected inflation from your nominal return (e.g., 7% nominal return − 2.5% inflation = 4.5% real return). This will show your purchasing power in today's money.
At what age should I start saving for a pension?
As early as possible. Due to compound growth, starting 10 years earlier can more than double your pension pot by retirement. In the UK, you can contribute to a pension from birth and receive basic-rate tax relief (20%) on contributions up to 100% of earnings, or up to £3,600/year for non-earners. Higher-rate taxpayers can reclaim an additional 20–25% through self-assessment. The earlier you start, the less you need to save each month.
How accurate is this pension calculator?
This calculator models compound growth at a fixed annual rate of return — it does not simulate market volatility, sequence-of-returns risk, or changing contribution amounts. Real pension outcomes depend on market performance, fund management fees (typically 0.1–0.75%/year for mainstream UK providers), inflation, tax rules, and your own behaviour. Use this tool to explore scenarios and set a savings direction, then review with a regulated financial adviser for personalised pension planning.