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Finance

UK Pension & Retirement Calculator

Project your pot at retirement, the 25% tax-free lump sum, an estimated drawdown income, and how the current State Pension adds to it.

✓ Free to use ✓ 2026/27 State Pension ✓ Tax-free lump sum ✓ Shareable results
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£
£
Growth rate & State Pension age
Projected Pot at Retirement
Tax-Free Lump Sum (25%)
Drawdown Income (4% rule)
+ State Pension
Total Annual Income
Total You'll Contribute

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How the projection works

Your current pot compounds at your expected growth rate, and your monthly contributions (employee + employer combined) are added and compounded the same way. At retirement, UK rules let you take up to 25% as a tax-free lump sum; the rest stays invested and can be drawn down. This calculator estimates a sustainable annual income from the remaining pot using the commonly-cited 4% rule — withdraw roughly 4% of the pot per year, adjusted for inflation, without excessive risk of running out.

The State Pension, 2026/27

The full new State Pension is £241.30/week (£12,547.60/year) for 2026/27, protected by the triple lock (rising each year by the highest of average earnings growth, inflation, or 2.5%). You need 35 qualifying National Insurance years for the full amount — fewer years mean a proportionally reduced pension. State Pension age is currently 66, rising to 67 for most people retiring in the coming years.

Worked example

Someone aged 30 with a £15,000 pot, contributing £400/month (combined) at 5% average annual growth, retiring at 67: their pot grows to roughly £607,000. Taking the 25% tax-free lump sum (£151,800) leaves £455,400, generating about £18,200/year under the 4% rule — plus the £12,548 State Pension, for a total estimated £30,765/year in retirement income.

State Pension figure sourced from gov.uk — State Pension, 2026/27 rate. This projection assumes a constant growth rate and doesn't account for market volatility, fees, tax on withdrawals above your personal allowance, or changes to contribution levels over time — treat it as a planning estimate, not a guarantee, and consider speaking to a regulated financial adviser for a full retirement plan.

Frequently Asked Questions

Is the 4% withdrawal rule reliable?+
It's a widely-cited rule of thumb (originating from US research) for a roughly 30-year retirement with a balanced investment portfolio — a reasonable starting point for planning, but not a guarantee, since real returns and inflation vary year to year. See the real cost of waiting 10 years to start →
Do I have to take the 25% tax-free lump sum?+
No — it's an option, not a requirement. Some people take less or none of it and leave more invested for drawdown, depending on their tax situation and income needs.
What if I don't get the full State Pension?+
You need 35 qualifying National Insurance years for the full new State Pension — fewer years give a proportionally reduced amount, and fewer than 10 years typically gives none at all. Check your State Pension forecast on gov.uk for your actual entitlement.

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