UK Pension Calculator (2026-27): Pot, Tax Relief & Retirement Income
Estimate your workplace or personal pension pot at retirement, what your contributions really cost after tax relief, your 25% tax-free lump sum, and the income your pot could pay.
Updated for the 2026-27 tax year · Rates checked 14 October 2026
| Pot at retirement | £691,600 |
|---|---|
| In today’s money | £277,378 |
| Your contributions | £148,892 |
| Employer contributions | £89,335 |
| Investment growth | £433,373 |
| Tax-free lump sum (25%) | £172,900 |
| Real cost of your contribution this year | £1,620 |
- By 67 your pot could be £691,600, about £277,378 in today’s money.
- This year £2,250 goes in from you plus £1,350 from your employer. Thanks to tax relief and NI savings, your share costs you only £1,620 (£135 a month).
- You could take £172,900 tax-free, and a 4% drawdown on the rest would pay about £20,748 a year before tax, on top of the State Pension.
Your result, explained
Your pension pot could reach £691,600, about £277,378 in today’s money. Of that, £148,892 comes from you, £89,335 from your employer and £433,373 from growth. You could usually take £172,900 tax-free.
Thanks to tax relief, your contribution this year really costs you £1,620. If your employer matches extra contributions, take the full match first: it is the best return available anywhere. Check your State Pension forecast on GOV.UK to see the full picture.
Growth by year
| Year | Contributions | Growth | Pot |
|---|---|---|---|
| 1 | £3,600 | £1,082 | £24,682 |
| 2 | £3,708 | £1,318 | £29,708 |
| 3 | £3,819 | £1,572 | £35,099 |
| 4 | £3,934 | £1,844 | £40,878 |
| 5 | £4,052 | £2,136 | £47,065 |
| 6 | £4,173 | £2,448 | £53,687 |
| 7 | £4,299 | £2,782 | £60,767 |
| 8 | £4,428 | £3,139 | £68,334 |
| 9 | £4,560 | £3,520 | £76,415 |
| 10 | £4,697 | £3,927 | £85,039 |
| 11 | £4,838 | £4,362 | £94,239 |
| 12 | £4,983 | £4,825 | £104,048 |
| 13 | £5,133 | £5,319 | £114,499 |
| 14 | £5,287 | £5,845 | £125,631 |
| 15 | £5,445 | £6,405 | £137,482 |
| 16 | £5,609 | £7,001 | £150,092 |
| 17 | £5,777 | £7,636 | £163,504 |
| 18 | £5,950 | £8,310 | £177,765 |
| 19 | £6,129 | £9,027 | £192,921 |
| 20 | £6,313 | £9,789 | £209,023 |
| 21 | £6,502 | £10,599 | £226,124 |
| 22 | £6,697 | £11,458 | £244,280 |
| 23 | £6,898 | £12,371 | £263,548 |
| 24 | £7,105 | £13,339 | £283,992 |
| 25 | £7,318 | £14,366 | £305,676 |
| 26 | £7,538 | £15,455 | £328,668 |
| 27 | £7,764 | £16,610 | £353,042 |
| 28 | £7,997 | £17,834 | £378,872 |
| 29 | £8,237 | £19,131 | £406,240 |
| 30 | £8,484 | £20,505 | £435,228 |
| 31 | £8,738 | £21,960 | £465,926 |
| 32 | £9,000 | £23,501 | £498,427 |
| 33 | £9,270 | £25,132 | £532,829 |
| 34 | £9,548 | £26,858 | £569,236 |
| 35 | £9,835 | £28,685 | £607,756 |
| 36 | £10,130 | £30,618 | £648,504 |
| 37 | £10,434 | £32,662 | £691,600 |
Popular amounts
How pension tax relief works
Pension contributions are made from pre-tax income. With salary sacrifice your salary is reduced, so you save Income Tax and National Insurance. With relief at source you pay from take-home pay and the provider adds 20%. Higher-rate taxpayers claim the rest through Self Assessment. With a net pay arrangement, contributions come out before tax.
Limits that matter
- Annual allowance: £60,000 a year including employer contributions (tapered for adjusted income above £260,000).
- Tax-free cash: usually 25% of your pot, up to the £268,275 lump sum allowance.
- Minimum pension age: 55, rising to 57 from April 2028.
Auto-enrolment
If you’re 22 or over and earn more than £10,000, your employer must enrol you and contribute. The legal minimum is 8% of qualifying earnings in total, with at least 3% from your employer.
Frequently asked questions
How much should I pay into my pension?
A common rule of thumb is to take half your age when you start saving as a percentage of salary, including your employer’s contribution. The more you start with, the less you need later.
Is the State Pension included?
No. This calculator covers your private or workplace pension. Check your State Pension forecast on GOV.UK.
Can I take all my pension as cash?
Yes, from minimum pension age, but only 25% is tax-free. The rest is taxed as income in the year you take it, which can push you into higher bands.