Pension Calculator 2026/27
A 35-year-old with a £25,000 pot, contributing 5% of a £40,000 salary with 3% employer match and 5% annual growth, could retire at 67 with £330,000. Using the 4% sustainable withdrawal rule, that generates ~£13,200/year. Add the full State Pension of £12,548 and you'd have ~£25,748/year, close to the PLSA 'Moderate' retirement standard of £31,300/year.
Figures verified against HMRC 2026/27 rates on .
Written by James HartleyCIMA
Calculator
Auto-enrolment minimum: 5% employee
Auto-enrolment minimum: 3% employer
Moderate: 5%. Cautious: 3%. Adventurous: 7%. Net of charges.
Estimated Pension Pot at Retirement
£371,066
at age 67 · 32 years of growth
Monthly Income (4% rule)
£2,283
£27,390/yr total
Tax-Free Lump Sum
£92,766
25% of pot (up to £268,275)
Investment Growth Share
68% of pot
£251,942 from returns
Annual Contributions
£3,200
Employee + employer total
PLSA Retirement Living Standards
Basic needs, limited leisure
Annual UK holiday, run a car
Regular European holidays
Your projected income is between the PLSA Minimum (£14,400) and Moderate (£31,300) standards. Increasing contributions by even 1 to 2% of salary can make a significant difference over time.
With 20+ years to retirement, compound growth does the heavy lifting. Even small increases now have decades to compound.
These insights are generated based on your inputs and general UK financial guidelines. They do not constitute personal financial advice. Always consult a CIMA-qualified accountant or FCA-regulated adviser before making financial decisions.
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How Pension Calculator 2026/27 Works
How pension projections work
The calculator compounds your existing pot at the chosen investment return, then adds monthly contributions (yours + employer's), also growing at that rate, replicating how real pension funds accumulate wealth over time.
The 4% rule
A widely-used guideline suggesting you can sustainably withdraw 4% of your pension pot per year without depleting it over a 30-year retirement. The PLSA reference lines on the chart show the pot size you need to hit each standard at 4% withdrawal.
PLSA Retirement Living Standards
The Pensions and Lifetime Savings Association benchmarks for single person outside London: Minimum £14,400/yr (basic needs); Moderate £31,300/yr (car, annual UK holiday); Comfortable £43,100/yr (regular European holidays, financial freedom).
State Pension (2026/27)
The full new State Pension is £241.30/week (£12,547.60/year). You need 35 qualifying years for the full amount. For qualifying years, State Pension age, and how to check your forecast, see our State Pension UK guide. For how tax relief and the annual allowance work, see our pension tax relief guide.
Auto-enrolment minimums (2026/27)
Minimum total: 8% of qualifying earnings: 5% employee, 3% employer. Qualifying earnings: £6,240-£50,270. Many employers match beyond the minimum - always claim the full employer match. For contribution rates, qualifying earnings, and how auto enrolment works in practice, see our pension auto enrolment guide.
Frequently Asked Questions
The full new State Pension for 2026/27 is £241.30 per week (£12,547.60 per year). You need 35 qualifying years of National Insurance contributions for the full amount. You can check your State Pension forecast at gov.uk/check-state-pension.
The PLSA 2025 Retirement Living Standards suggest: Minimum = £14,400/yr; Moderate = £31,300/yr; Comfortable = £43,100/yr. These are for a single person outside London. To generate £31,300/yr at 4% withdrawal, you need approximately £783,000 (net of State Pension of £12,548, you need £19,798 from your pot = ~£495,000).
Financial advisers often suggest contributing half your age as a percentage of salary, so a 30-year-old should aim for 15%. The auto-enrolment minimum (8% total) is often insufficient. Always take the full employer match first - it's essentially free money with an immediate 100% return.
The annual allowance is £60,000 per year (or 100% of earnings if lower). This covers total contributions including employer contributions and tax relief. The MPAA, which applies if you've taken flexible income, is £10,000.
Private/workplace pensions from age 55 (rising to 57 in 2028). State Pension age is currently 66, rising to 67 between 2026 to 2028.
From April 2027, unspent pension funds will be included in your estate for inheritance tax purposes. This is a significant change - currently pensions are outside IHT. If you plan to use your pension as an estate planning tool, seek financial advice before April 2027.
Related Guides
Tax Free Pension Lump Sum UK 2026/27
25% tax free cash, the £268,275 lump sum allowance, minimum pension age, and MPAA traps.
Read guidePension Tax Relief UK 2026/27
How relief works, the £60,000 annual allowance, taper, MPAA, and carry forward.
Read guideState Pension UK 2026/27
Full weekly amount, State Pension age, qualifying years, and how to check your forecast.
Read guidePension Auto Enrolment Guide UK 2026/27
Minimum contributions, qualifying earnings, and how to maximise employer matching.
Read guideWas this calculator helpful?
Official Rates Used
This calculator uses official HMRC rates for 2026/27. View the current rates at GOV.UK:
Rates last verified:
Disclaimer: This calculator provides estimates based on standard HMRC rates for 2026/27. Results may vary based on individual circumstances. This is not financial advice. Always consult a qualified accountant or CIMA-qualified financial adviser for personal tax matters.