Private & State Pension Calculator: Plan Your Comfortable Retirement
Forecast Your Income Today!
Ever wonder how much income you'll actually have when you stop working? Planning for retirement can feel daunting, but getting a clearer picture of your potential future finances is a crucial first step towards a secure and comfortable life after work. That's where our comprehensive Private & State Pension Calculator comes in.
This easy-to-use tool is designed to help you look ahead, giving you an estimate of your total pension savings and what that might mean for your annual income in retirement.
How Our Calculator Helps You Plan
Our Private & State Pension Calculator uses a few key pieces of information you provide to create a personalised forecast. Simply enter:
Your current age
The age you aim to retire
Your current gross annual income
Any existing pension savings you've already built up
Your preferred tax-free cash lump sum amount (the calculator will show you what's possible based on your pot, typically up to 25%)
Your current monthly pension contributions (both yours and any from your employer if applicable)
By considering these details, the calculator projects forward, taking into account potential investment growth and contributions over time.
UK Pension & Retirement Planning Calculator
Your Details & Current Pension
Your Pension Contributions
How much you want to take as a tax-free lump sum
You are entitled to take up to 25% tax free from your defined contribution pension pot. Adjust the amount you could take to see the change in your retirement income.
Do you have a defined benefit pension? (salary related) (Optional)
Your Retirement Goals
Your Estimated Pension Results
This is the total of your existing pension pot and all contributions (personal grossed up, and employer) made until your planned retirement age.
Projected value of your defined contribution pension pot(s) at retirement.
Amount you can take from your defined contribution pot tax-free.
Combines income from your private pension pot (after tax-free cash), State Pension (if included), and Defined Benefit pension (if applicable and started).
Compares your estimated total annual income against your desired income. A positive value is a surplus, negative is a shortfall.
An estimate of when your defined contribution pension pot (after tax-free cash) might be depleted, assuming withdrawals to cover income needs not met by State or Defined Benefit pensions, and continued modest growth in retirement. This does not mean all income stops if you have State or DB pensions.
Important Assumptions:
- State Pension: Based on current full new State Pension rates if included.
- Investment Growth (Accumulation): 5.0% per year before charges.
- Investment Growth (Decumulation/In Retirement): 3.0% per year before charges (used for pot run-out calculation).
- Annual Charges: 0.5% (as specified by you, deducted from growth rates).
- Tax Relief: Basic rate (20%) tax relief is automatically added to your personal contributions.
- Annual Income from DC Pot: For initial estimation, 4% of the pot remaining after tax-free cash is used. The run-out calculation uses actual withdrawals based on your desired income and other income sources.
- Inflation: Projections are in future money and not adjusted for inflation within these primary results.
- Defined Benefit Income: Assumed to be a fixed nominal amount starting at the age you specify and not inflation-linked within this calculator.
- This is an illustration, not financial advice. Personal circumstances can vary.
Disclaimer: This calculator provides an illustration based on the figures you input and does not constitute financial advice. Actual returns may vary. Projections do not account for taxes beyond basic rate relief on contributions or potential platform fees unless entered.
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Why Forecast Your Retirement Income?
Knowing what your retirement could look like financially empowers you to:
Make informed decisions today: See if your current savings plan is on track for the retirement lifestyle you envision.
Identify potential shortfalls: Understand if you need to save more or perhaps adjust your retirement age.
Gain peace of mind: Reduce uncertainty by having a tangible forecast to work with.
Plan for your State Pension: Our calculator helps you see the combined picture, factoring in estimates for your State Pension alongside your private savings.
Understanding Your Results: A Glimpse into Your Future
Once you've entered your information, the calculator will provide you with valuable insights, typically showing:
Your Total Estimated Pension Pot: An estimate of the total value your combined private pension savings could reach by your chosen retirement age.
Your Tax-Free Cash Amount: The potential lump sum you could take from your private pension tax-free at retirement (usually up to 25% of your pension pot).
Your Forecasted Annual Retirement Income: An estimate of the yearly income you might receive from your remaining pension pot after taking any tax-free cash, often shown alongside your estimated State Pension income to give you a fuller picture.
These figures can help you visualise your financial situation in retirement and understand the impact of your savings decisions.
Book a call with a pension adviser today.
We’ll find a professional perfectly matched to your needs. Getting started is easy, fast and free.
Disclaimer: This pension calculator provides an illustrative forecast based on the information you enter and certain assumptions about investment growth and annuity rates. It is not a guarantee of future income. The figures do not constitute financial advice. Your actual retirement income may be higher or lower than the estimate. Inflation will also affect the purchasing power of your money in the future. We recommend speaking to an independent financial adviser for personalised advice on your retirement planning.