Pension Calculator UK 2026
Calculate your UK workplace pension contributions and see the tax and National Insurance saving from salary sacrifice. Also projects your pension pot at retirement using compound growth. Auto-enrolment minimum: 5% employee, 3% employer (total 8%).
Auto-enrolment minimum: 5%
Employer minimum: 3%
Projected pension pot in 30 years
£195,330
Assuming 5% annual growth
Real cost to you
Your £1,750/year pension contribution actually costs you just £1,260 per year after income tax and NI relief via salary sacrifice. Your employer adds £1,050 on top.
Frequently Asked Questions
How much do I need to contribute to my pension?
Under UK auto-enrolment rules, the minimum is 5% employee and 3% employer (total 8%) of qualifying earnings. You can contribute more to reduce your tax bill and build a larger pot. Financial advisers often suggest 10–15% total for a comfortable retirement.
How much does pension salary sacrifice save me?
Pension contributions via salary sacrifice reduce your taxable income and your National Insurance. A basic-rate taxpayer saves 28p per £1 contributed (20% income tax + 8% NI). A higher-rate taxpayer saves 42p per £1 (40% + 2%). Your employer also saves NI on your contribution.
How much pension do I need for retirement?
The Pensions and Lifetime Savings Association (PLSA) Retirement Living Standards estimate you need a pension pot of around £400,000–£500,000 for a 'moderate' retirement (combined with the State Pension). For a 'comfortable' lifestyle with more travel and leisure, around £700,000+. The State Pension adds up to £11,502 per year (2026).
What is the pension annual allowance?
The pension annual allowance is £60,000 for most people in 2026 — this is the maximum you and your employer can contribute to all pensions in a tax year while still receiving tax relief. If you earn above £260,000, the tapered annual allowance may reduce this.
What growth rate should I use for my pension projection?
Financial regulators commonly use 5% per year as a medium growth assumption (net of charges) for balanced investment portfolios. Lower-risk portfolios might use 3–4%; higher-risk growth portfolios might use 6–7%. These are illustrations, not guarantees.