Pension Calculator
Estimate defined-benefit pension payout from final salary, years of service, and multiplier.
Compare single-life and joint-and-survivor annuity options.
A pension calculator estimates the retirement pot you will accumulate and the income it can provide, based on your contributions, employer contributions, investment returns, and years until retirement.
The compound growth formula: FV = PMT × ((1 + r)ⁿ − 1) / r
Where PMT = monthly contribution, r = monthly growth rate, n = total months.
Worked example:
Starting at age 30, retiring at 67 (37 years = 444 months):
- Your monthly contribution: £300
- Employer contribution: £150 (total £450/month)
- Average real return (after inflation): 4% per year = 0.333% per month
FV = £450 × ((1.00333)⁴⁴⁴ − 1) / 0.00333 FV = £450 × (4.37 − 1) / 0.00333 FV = £450 × 1,011.7 FV = £455,265 pension pot
Safe withdrawal rate (the 4% rule): At retirement, withdraw 4% of the pot in year 1, adjusting for inflation thereafter. This historically sustains withdrawals for 30+ years. Annual income = £455,265 × 0.04 = £18,211/year (plus state pension)
UK state pension (2024): £11,502/year (full new state pension) Combined total: approximately £29,713/year
Starting later — the cost of delay: Starting at 30 vs starting at 40 with the same £450/month at 4% real return: At 30: £455,265 At 40: £215,000 Delaying 10 years roughly halves the final pot.
Auto-enrolment minimum contributions (UK 2024):
- Employee minimum: 5% of qualifying earnings (including tax relief)
- Employer minimum: 3% of qualifying earnings
- Combined: 8% minimum — experts recommend 12–15% for a comfortable retirement