How Much Pension Will I Have at Retirement?

What decides the size of your pot

A defined contribution pension pot is built from four things: how much you pay in, how much your employer adds, the investment growth on top, and — above all — how long it has to grow.

Small differences in contribution rate or starting age compound into very large differences by retirement, which is why starting early matters so much.

• Your contributions and any tax relief.
• Employer contributions.
• Investment growth (after charges and inflation).
• Time — the number of years invested.

The power of compound growth

Growth earns growth. Money invested in your twenties has decades to compound, so each early pound can be worth several times more at retirement than a pound added near the end.

This is why increasing contributions slightly in your thirties can outweigh much larger contributions made in your fifties.

How much is 'enough'?

A common rule of thumb is to aim for a pension pot that, combined with the State Pension, replaces around two-thirds of your working income. Industry retirement living standards put a 'moderate' single retirement income at a meaningful figure above the State Pension alone.

The State Pension provides a base, but most people need a workplace or personal pension on top to retire comfortably.

Assumptions matter

Any projection depends on assumed growth rates, charges and inflation. Modest changes in these assumptions produce very different pot sizes, so treat projections as a guide, not a guarantee.

It is sensible to look at figures in 'today's money' (adjusted for inflation) so the numbers feel realistic.

Project your pension pot

Use our Pension Pot Projection Calculator to estimate how big your pension could grow from your current pot, monthly contributions and assumed growth — and our Pension Contribution Calculator to see how paying in a little more changes the outcome.