"I'll contribute more later, once I earn more" is the most common pension mistake, and it's costly in a way that's hard to intuit — because the cost isn't really about the amount, it's about the years.
£200/month, 5% average annual growth, retiring at 67:
| Start age | Total paid in | Pot at 67 |
|---|---|---|
| 25 | £100,800 | £342,270 |
| 35 | £76,800 | £188,957 |
| Difference | +£24,000 | +£153,313 |
Starting 10 years earlier means paying in £24,000 more over a working life — and ending up with £153,313 more in the pot. Every extra pound contributed in your 20s has decades longer to compound than the equivalent pound contributed in your 30s, and that time difference is worth roughly 6x the extra amount paid in.
At retirement, UK rules allow up to 25% of the pot tax-free. On the £342,270 pot, that's £85,568 tax-free, leaving £256,703 to draw down — roughly £10,268/year under the commonly-cited 4% rule, on top of the State Pension (£12,547.60/year for 2026/27 at the full new rate).
Enter your age, contributions and growth rate to see your projected pot, lump sum and retirement income.
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