Retirement Planning Calculator UK
Estimate the retirement corpus you need based on expenses, inflation and post-retirement returns.
How it works
Compound interest earns returns on both your original money and the returns already added. Adding a regular monthly contribution accelerates growth further over time.
A = P(1 + r/n)^(nt) + contributions compounded monthly- Longer time horizons benefit most from compounding
- More frequent compounding gives slightly higher growth
- The donut shows how much of your final balance is interest vs money you put in.
Frequently asked questions
How much do I need to retire in the UK?
It depends on the income you want and your State Pension entitlement. A common approach is to target a pot that, with the State Pension, covers your expected expenses.
What is pension auto-enrolment?
A scheme where employees are automatically enrolled into a workplace pension, with minimum total contributions of 8% of qualifying earnings — usually 5% from you and 3% from your employer.
How does pension tax relief work?
Contributions get tax relief at your marginal rate, so £100 in your pension costs a basic-rate taxpayer £80 and a higher-rate taxpayer £60.
Can I take a tax-free lump sum?
Usually yes — typically up to 25% of your pension pot can be taken tax-free from age 55 (57 from 2028), with the remainder taxed as income.
What is the ISA allowance?
You can save or invest up to £20,000 a year across ISAs, with returns free of UK Income Tax and Capital Gains Tax.
Is the State Pension enough on its own?
For most people, no. It provides a foundation, so workplace and personal pensions and ISAs are commonly used to top up retirement income.
Planning for retirement in the UK
Retirement planning means building a pension pot large enough to provide the income you want, alongside the State Pension. This calculator projects how your contributions and investment growth could add up over time, so you can see whether you are on track.
Workplace pensions and auto-enrolment
Most employees are automatically enrolled into a workplace pension, with minimum total contributions of 8% of qualifying earnings — typically 5% from you (including tax relief) and 3% from your employer. The employer contribution is effectively free money, so opting out usually means leaving it behind.
Tax relief and tax-free cash
Pension contributions attract tax relief at your marginal rate, so a £100 contribution costs a basic-rate taxpayer just £80. From age 55 (rising to 57 from 2028) you can usually take 25% of your pot tax-free, with the rest taxed as income when drawn.
The State Pension and ISAs
The flat-rate State Pension provides a foundation but is modest, so most people supplement it with workplace or personal pensions and ISAs (with a £20,000 annual allowance). Returns are not guaranteed and inflation erodes value, so treat projections as estimates and consider regulated financial advice.
Results are estimates for general guidance in United Kingdom and may not reflect the latest local rates, fees or rules. Check official sources before making decisions.