A retirement-planning rule of thumb suggesting you can withdraw 4% of your pot in year one (rising with inflation) without running out of money over 30+ years.

Are pensions tax-free?

Pension contributions in the UK get tax relief. Withdrawals are usually taxed as income, but 25% can typically be taken tax-free.

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Retirement

Retirement Pension Calculator

Estimate how big your pension pot will be at retirement and how much sustainable monthly income it could produce.

Current age

Retirement age

Current pension pot

Current gross salary

Contributions

You contribute

Employer contributes

Annual pay rise

Investment & drawdown

Annual return

Inflation

Drawdown years

Include UK State Pension (~£11,973/yr, 2025/26)

Pot at retirement

£742,142.33

Real value (today's £)

£312,717.31

Years contributing

Monthly income (30yr drawdown)

£1,404.24

Monthly income (4% rule)

£2,473.81

Total annual retirement income

£28,823.89

How this retirement calculator works

Your current pot grows at the chosen annual rate, compounded monthly, until your retirement age.

Monthly contributions are added throughout the saving period.

Sustainable income is estimated using the 4% safe withdrawal rate — divided by 12 for a monthly figure.

Frequently asked questions

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Tell us your goal, how long you have and the return you expect — we'll tell you how much to set aside each month.

How this retirement calculator works

Frequently asked questions

What is the 4% rule?

Are pensions tax-free?

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