UK Pension Calculator 2026/27
Project your 2026/27 workplace pension pot at retirement. Calculate auto-enrolment contributions, employer top-ups, and estimated monthly retirement income.
Last updated: May 2026
Auto-enrolment minimum: 5%
Auto-enrolment minimum: 3%
Historical average: 5–7% for diversified portfolio
Monthly Employee Contribution
£188
Monthly Employer Contribution
£113
Tax Relief Added (Monthly)
£47
Total Into Pension (Monthly)
£347
Projected Pot at Retirement
£314,211
Monthly Retirement Income (4% SWR)
£1,047
Pension Summary
* Monthly income based on the 4% Safe Withdrawal Rate (Bengen rule). Assumes tax-free pension commencement lump sum of 25% may also be available. Values are in today's money before inflation adjustment.
Reviewed by CA Rohit Sharma
•Chartered Accountant & Tax ExpertExpert in Indian taxation, corporate finance, and mortgage compliance. Rohit ensures that all tax-related calculations and loan eligibility criteria align with current regulatory standards. All mathematical models and regulatory data points have been verified for the current 2026 fiscal period.
What is auto-enrolment pension in the UK?
Auto-enrolment requires employers to automatically enrol eligible workers into a workplace pension. Minimum contributions are 5% from the employee and 3% from the employer, calculated on qualifying earnings.
Your pension contributions receive tax relief at your marginal income tax rate. A basic rate taxpayer contributing 80 to their pension effectively contributes 100 because the government adds 20% tax relief.
How to use this calculator
- 1Enter your salary — Input your current annual salary or earnings.
- 2Set contribution rates — Enter your employee and employer contribution percentages.
- 3Set retirement age — Enter how many years until you plan to retire.
- 4Review pot and income — See your projected pension pot and estimated monthly retirement income.
Formula & example
Pension Pot = Monthly Contribution x ((1 + r)^n - 1) / r | Monthly Income = Pot / Annuity Rate x 12
Example: Salary 40,000. Employee contributes 5% = 1,462/year. Employer adds 3% = 877/year. Total 2,339/year at 6% return for 30 years = pension pot of approximately 196,000.
Benefits
Tax relief included
Pension contributions attract tax relief at your marginal rate, boosting the effective return.
Employer match visible
See the full value of your employer contribution as part of your total remuneration.
Income projection
Estimate monthly retirement income from the pot using a standard annuity rate.
2026/27 figures
Uses current auto-enrolment thresholds and qualifying earnings bands.
Use cases
Checking auto-enrolment adequacy
Assess whether the minimum auto-enrolment contributions will provide enough retirement income.
Salary sacrifice planning
Model the impact of increasing pension contributions via salary sacrifice to reduce income tax and NI.
Late start planning
Calculate contributions needed to build an adequate pension having started later in your career.
Retirement date planning
See how working an extra 2-5 years dramatically increases your pension pot.
Frequently asked questions
What is the pension annual allowance for 2026/27?+
There is no longer a pension lifetime allowance (abolished April 2024). The annual allowance — the maximum you can contribute tax-efficiently each year — is £60,000 for 2026/27.
Can I take 25% of my pension tax-free?+
Yes. From age 57 (rising from 55 in 2028), you can take 25% of your pension as a tax-free lump sum. The remaining 75% is taxed as income when withdrawn.
What happens to my pension if I change jobs?+
Your workplace pension stays invested with the same provider. You can keep it there, transfer it to your new employer's scheme, or consolidate multiple pots into a personal pension. It does not disappear when you leave a job.
What is the State Pension worth in 2026/27?+
The full new State Pension increases each April under the triple lock guarantee. Check the government website for the exact current weekly rate. You need 35 qualifying NI years to receive the full amount.
Should I put extra money into my pension or ISA?+
Pensions offer upfront tax relief (great for higher rate taxpayers) but are locked until 57. ISAs are more flexible but have no upfront tax relief. Many financial advisers recommend using both to balance tax efficiency and accessibility.