Precision Utility
How Much Do I Need to Retire? UK Calculator
State Pension
Check age
4% Rule
Illustration
Find out if your retirement savings are on track. Enter your current age, target retirement age, existing pension savings, monthly contributions, expected return rate and desired annual retirement income to see your projected balance, illustrative monthly income at 4% of the projected pot, any income gap, and how many years your savings will last.
Retirement Parameters
Projected Savings at Retirement
£0
Monthly Income (4% Rule)
£0 / mo
Retirement Income Gap
£0 / yr
Years Savings Will Last
0 yrs
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How the retirement calculator works
This retirement calculator projects the future value of your pension savings using compound interest with monthly contributions. Start by entering your current age and your target retirement age. The gap between the two determines your accumulation period — the years your investments have to grow before you begin drawing income.
Enter your current pension savings balance and how much you plan to save each month. The calculator applies your expected annual rate of return, compounded monthly, using the future value formula: FV = PV(1+r)^n + PMT[((1+r)^n - 1) / r], where r is the monthly rate and n is total months until retirement.
The monthly-income illustration is 4% of the projected pot divided by 12. It is not a promise of sustainable income: investment returns, inflation, tax, fees and the order of market gains or losses can change what a pot supports.
The calculator compares that 4% illustration with your desired income. The on-track label means only that the illustration meets the amount entered; it is not an assessment of retirement readiness.
What you need to know about UK retirement planning
UK State Pension: The full new State Pension is worth £12,548 per year (2026/27) ; qualifying-year requirements can differ for people with a pre-April-2016 NI record. The State Pension age is currently 66 and is rising to 67 between 2026 and 2028. This calculator focuses on personal and workplace pension savings and does not include State Pension income, so your actual retirement income may be higher than shown.
Workplace pensions and auto-enrolment: Since 2012, UK employers must auto-enrol eligible workers into a workplace pension. The minimum total contribution is 8% of qualifying earnings — 5% from you and 3% from your employer. Many employers offer enhanced matching contributions, so it is worth checking whether you can increase your contribution to receive the full employer match.
Pension freedoms: Since April 2015, you can access your defined contribution pension from age 55 (rising to 57 in 2028). You can take 25% of your pension pot tax-free as a lump sum and draw the rest as taxable income however you choose. The pension lifetime allowance was abolished from April 2024, meaning there is no longer an overall cap on pension savings, although the annual allowance of £60,000 still applies.
Withdrawal assumption: The 4% figure is an illustrative starting point. This calculator does not perform a historical-market backtest or estimate a success probability. Try different savings, contribution and return inputs and seek advice before drawing a pension.
Frequently asked questions
What is the UK State Pension age?
Your State Pension age depends on your date of birth. Check your personal age on GOV.UK. This calculator uses the target retirement age you enter and does not include State Pension income.
How much is the full UK State Pension?
The full new State Pension is £241.30 a week in 2026/27. People whose NI record starts after April 2016 normally need 35 qualifying years for the full amount; earlier records have transitional rules. Check your personal State Pension forecast rather than assuming a simple fraction of 35 years.
What is auto-enrolment for workplace pensions?
Auto-enrolment requires UK employers to automatically enrol eligible workers into a workplace pension scheme. The minimum total contribution is 8% of qualifying earnings — 5% from the employee and 3% from the employer. You can opt out, but doing so means losing the employer contribution, which is essentially free money towards your retirement.
How much money do I need to retire comfortably in the UK?
A common guideline is to save 25 times your desired annual retirement income. For example, if you want £40,000 per year, you would need approximately £1 million saved. The Pensions and Lifetime Savings Association suggests around £43,100 per year for a "comfortable" single person retirement. Use this calculator to check if you are on track.
What is the 4% rule for retirement withdrawals?
A common illustration starts with an annual withdrawal of 4% of a portfolio. This tool shows 4% of the projected pot divided by 12, while its separate duration model uses fixed annual withdrawals and 4% growth. It does not model inflation, tax, fees or variable investment returns and cannot guarantee that savings will last.
When can I access my pension savings in the UK?
You can currently access your defined contribution pension from age 55. This minimum pension access age is rising to 57 in April 2028. Under pension freedoms, you can take 25% of your pot tax-free and draw the rest as taxable income. You do not have to buy an annuity — you can use drawdown or take lump sums as you wish.
Has the pension lifetime allowance been abolished?
Yes. The pension lifetime allowance was abolished from April 2024. Previously capped at £1,073,100, it imposed a tax charge on pension savings above the limit. There is now no overall cap on how much you can save into pensions, though the annual allowance of £60,000 per year still applies to most people.
Duration model assumptions
The separate duration illustration withdraws the desired annual income, then applies fixed 4% growth to the remaining balance each year. Withdrawals are not increased for inflation. State Pension, income tax and fees are excluded, and the displayed duration is rounded. These assumptions differ from a full retirement plan.
Check your own State Pension forecast
State Pension is not included in these results. Use GOV.UK’s forecast to check your projected entitlement, qualifying record and pension age, then account separately for tax and changing living costs.