Pension Calculator
Project your retirement pot and estimate monthly income
Pension planning is one of the highest-impact things you can do financially — but it's also one of the most procrastinated. This tool projects your pot size, estimates monthly retirement income, and makes the 4% drawdown rule concrete. The earlier you start, the less each month costs you.
Your Pension Details
£
£
£
£
Projected Pot
£0
Est. Monthly Income
£0
Real Value (inflation-adj.)
£0
0%Income Replacement Rate
£0From Investments (4% rule)
£0State Pension (monthly)
—On-Track Indicator
Pension Growth
📋 Three things this projection doesn't model — but you need to know
💰 25% Tax-Free Lump Sum
Most people can take up to 25% of their pot (capped at £268,275) as a tax-free cash lump sum at retirement. Taking this changes your remaining pot — and your monthly income — significantly. The result above assumes 100% drawdown.
📋 Annuity vs Drawdown
The 4% drawdown rule assumes you manage the pot in retirement. An annuity converts your pot into a guaranteed income for life — useful if you want certainty and hate market risk. Current annuity rates for a £100,000 pot at age 65 are roughly £5,000–£7,000/year. Drawdown keeps flexibility; annuity removes longevity risk.
🏛️ Defined Benefit / Final Salary Pension?
If you work in the public sector (NHS, teaching, civil service, local government) you likely have a Defined Benefit pension that pays a fraction of your final or career-average salary per year worked — not a pot to draw from. This calculator is for DC (Defined Contribution) pensions only. Check your annual pension statement for your DB projected income.