Pension Projection Calculator
See how big your pension pot could grow by the time you retire, how much of it is investment growth you never paid in, and how much you could take tax-free.
| Tax-free lump sum | £67,896 |
|---|---|
| Taxable when drawn | £203,688 |
| Projected pot | £271,585 |
The tax-free amount is capped at the Lump Sum Allowance of £268,275, so it is less than a full 25% of this pot.
- Money you paid in
- Investment growth
After 27 years the pot reaches £271,585. Of that, £144,385 (53.2%) is investment growth you never paid in.
| Year | Age | Pot value | Paid in | Growth |
|---|---|---|---|---|
| 0 | 40 | £30,000 | £30,000 | £0 |
| 1 | 41 | £34,945 | £33,600 | £1,345 |
| 2 | 42 | £40,099 | £37,200 | £2,899 |
| 3 | 43 | £45,473 | £40,800 | £4,673 |
| 4 | 44 | £51,075 | £44,400 | £6,675 |
| 5 | 45 | £56,916 | £48,000 | £8,916 |
| 6 | 46 | £63,004 | £51,600 | £11,404 |
| 7 | 47 | £69,351 | £55,200 | £14,151 |
| 8 | 48 | £75,968 | £58,800 | £17,168 |
| 9 | 49 | £82,867 | £62,400 | £20,467 |
| 10 | 50 | £90,058 | £66,000 | £24,058 |
| 11 | 51 | £97,555 | £69,600 | £27,955 |
| 12 | 52 | £105,371 | £73,200 | £32,171 |
| 13 | 53 | £113,519 | £76,800 | £36,719 |
| 14 | 54 | £122,013 | £80,400 | £41,613 |
| 15 | 55 | £130,868 | £84,000 | £46,868 |
| 16 | 56 | £140,100 | £87,600 | £52,500 |
| 17 | 57 | £149,723 | £91,200 | £58,523 |
| 18 | 58 | £159,756 | £94,800 | £64,956 |
| 19 | 59 | £170,216 | £98,400 | £71,816 |
| 20 | 60 | £181,119 | £102,000 | £79,119 |
| 21 | 61 | £192,486 | £105,600 | £86,886 |
| 22 | 62 | £204,337 | £109,200 | £95,137 |
| 23 | 63 | £216,691 | £112,800 | £103,891 |
| 24 | 64 | £229,570 | £116,400 | £113,170 |
| 25 | 65 | £242,996 | £120,000 | £122,996 |
| 26 | 66 | £256,993 | £123,600 | £133,393 |
| 27 | 67 | £271,585 | £127,200 | £144,385 |
Information
A defined-contribution pension grows in two ways: the money you pay in, and the investment growth that money earns while it sits invested. This calculator projects both, year by year, from now to your chosen retirement age, so you can see how much of the final pot is your own contributions and how much is growth you never paid in.
How the projection works. Each month your contribution is added to the pot, and the whole pot grows at your assumed rate, less the annual fee. Growth compounds: returns earn further returns, which is why the growth band on the chart widens the further out you look. A small change to the growth rate or fee, held over decades, moves the final pot a lot.
Taking it at retirement. From age 55 (rising to 57 in April 2028) you can normally take up to 25% of the pot as a tax-free lump sum, capped at the Lump Sum Allowance of £268,275. The rest is taxable as income when you draw it. The breakdown above splits the projected pot into the tax-free slice and the part that will be taxed when you take it.
What's simplified. The projection holds the growth rate and fee flat for the whole term and assumes contributions never change. It shows the pot in future pounds, so it is not adjusted for inflation: £100,000 in thirty years buys less than £100,000 today. It does not model tax relief on your contributions, employer contributions, the State Pension, or how you draw the pot down after retirement. Open the full planner to model contributions that rise over time, tax relief, employer top-ups, and a full drawdown across your retirement.
FAQ
- How much of my pension is growth versus what I paid in?
Over a long horizon, a surprising amount. Because each year's growth compounds on top of every previous year's, the investment growth on a pot you contribute to for decades often ends up larger than the total of everything you paid in. This calculator splits the final pot into the two: the pale band on the chart is your own money (the starting pot plus every monthly contribution), and the gap above it is growth you never paid in. That gap is the whole reason to start early.
- How much of my pension can I take tax-free?
Normally 25% of the pot, as a tax-free lump sum (the Pension Commencement Lump Sum), taken from age 55 (rising to 57 from April 2028). There's an overall cap: the Lump Sum Allowance is £268,275, so on a pot above about £1.07m the tax-free part stops at that figure rather than a full 25%. The other 75% is taxed as income when you draw it. This calc shows both parts, and flags when the allowance cap bites.
- Does this include tax relief on my contributions?
No, and that matters. This calc treats your monthly figure as the amount that actually lands in the pot. In reality a personal or workplace pension gets tax relief on top: a basic-rate taxpayer's £300 contribution is topped up to £375 by 20% relief (higher-rate taxpayers claim more back through their tax return). So if the £300 you enter is your take-home cost, the real pot could be meaningfully larger. The full planner models contribution tax relief, salary sacrifice, and the annual allowance.
- What does the annual fee do to my pot?
More than most people expect. A fee is charged on the whole pot every year, so it compounds against you exactly the way growth compounds for you. The calc models it as a drag on the growth rate: 5% growth with a 0.75% fee is a 4.25% net return. Over 30 years that seemingly small gap can cost tens of thousands of pounds. Try changing the fee from 0.75% to 0.25% and watch the final pot move, it's often worth more than chasing a slightly higher return.
- What's not modelled?
Three things. (1) Inflation: the figures are in future pounds, so a £250k pot in 30 years buys less than £250k of today's goods; the planner has real-vs-nominal toggles. (2) A changing contribution: the monthly figure is held flat, whereas most people pay in more as their salary rises. (3) A variable growth path: real markets rise and fall; this holds a single average rate for the whole projection. Treat the long-run figure as an indication, not a promise. Continue in the planner to model all three.
Sources
- Tax when you get a pension (GOV.UK)
- Personal pensions: your rights (GOV.UK)
Disclaimer
Not financial advice. The figures above are a projection from the inputs and assumptions you provided; your real pot depends on the returns your investments actually earn, the fees you actually pay, changes to your contributions, and future tax rules. Investment growth is never guaranteed and the pot can fall as well as rise. Check your provider's own illustration and consult a qualified adviser before making a decision based on these numbers.
