Pension Calculator UK

Project your UK workplace pension including employer contributions. See how auto-enrolment contributions and investment growth build your pension pot over time.

How UK Workplace Pensions Work

A workplace pension is a retirement savings scheme arranged by your employer. Since auto-enrolment was introduced in 2012, most UK employers are legally required to enrol eligible workers into a pension scheme and make contributions on their behalf.

Your contributions are deducted from your salary before you receive your pay (or after, depending on the scheme type), and your employer adds their own contribution on top. The combined pot is invested in funds chosen by you or defaulted by the scheme provider.

Auto-Enrolment Minimum Contributions

Under auto-enrolment rules, the minimum total contribution is 8% of qualifying earnings. This is split between you and your employer: you contribute at least 5% and your employer contributes at least 3%. Qualifying earnings for 2024/25 are between £6,240 and £50,270 per year.

Many employers contribute more than the minimum 3%. Some offer matching schemes where they increase their contribution if you increase yours. It is worth checking your employer's pension policy — contributing more than the minimum can significantly boost your retirement savings.

This calculator uses your full salary for simplicity. In practice, contributions are calculated on qualifying earnings (the band between £6,240 and £50,270), so actual contributions may differ slightly.

State Pension Age

The UK State Pension age is currently 66 and is scheduled to rise to 67 between 2026 and 2028, with a further increase to 68 planned for the late 2030s. Your workplace pension is separate from the State Pension — it supplements whatever State Pension you qualify for based on your National Insurance record.

The full new State Pension for 2024/25 is £221.20 per week (about £11,500 per year). Most people will need a workplace pension on top of this to maintain their standard of living in retirement.

Tax Relief on Pension Contributions

One of the biggest advantages of a workplace pension is tax relief. If you are a basic rate taxpayer (20%), a £100 pension contribution only costs you £80 — the government adds £20 in tax relief. Higher rate taxpayers (40%) can claim additional relief through their tax return, making the effective cost just £60 for a £100 contribution.

The annual allowance for pension contributions is £60,000 for 2024/25 (or 100% of your earnings, whichever is lower). Contributions above this limit may incur a tax charge. There is no longer a lifetime allowance — it was abolished in April 2024.

Accessing Your Pension

You can normally access your workplace pension from age 55 (rising to 57 from 2028). When you reach this age, you can take up to 25% of your pot as a tax-free lump sum. The remainder can be drawn as income (subject to income tax), used to buy an annuity, or left invested in drawdown.

For tax-free savings options that complement your pension, explore our ISA Calculator. To model whether your combined savings will last through retirement, try the Retirement Calculator.