About the Retirement Calculator
Planning for retirement is one of the most important financial decisions you will make. This calculator helps you estimate how much you need to save now to achieve the retirement income you want. It considers your current pension pot, monthly contributions, investment growth, and the State Pension.
Key retirement planning concepts
- Pension pot: The total savings in your pension that will provide income in retirement.
- State Pension: A regular payment from the government based on your National Insurance record. The full new State Pension is 11,502 per year (2025/26).
- Retirement duration: The number of years your pension needs to last after you stop working.
- Sustainable withdrawal rate: A common rule is 4% of your pension pot per year to make it last 30 years.
Tips for boosting your retirement savings
- Start as early as possible to benefit from compound growth.
- Contribute enough to get your employer's full match.
- Increase your contributions whenever you get a pay rise.
- Review your pension investments regularly to ensure they match your risk profile.
- Consider consolidating old pensions to reduce fees and simplify management.
Frequently asked questions
What is the UK State Pension age?
The current State Pension age is 66, rising to 67 between 2026 and 2028, and may rise further. Check the gov.uk website for the latest information.
How much do I need in my pension pot?
A common goal is a pension pot of 10-12 times your desired annual income. For example, to achieve 25,000 per year, aim for 250,000-300,000.
What is the 4% rule?
The 4% rule suggests you can withdraw 4% of your pension pot each year (adjusted for inflation) and it should last 30 years. For a 300,000 pot, that's 12,000 per year.