How much pension do I need to retire at 60 in the UK?

For a moderate retirement income of £31,300/year (PLSA standard), you need roughly £500,000–£600,000 in your pension pot by age 60, assuming 4% annual drawdown. The state pension (£11,502/yr) reduces how much you need from your private pot.

How much should I pay into my pension each month?

A common rule of thumb is to save half your age as a percentage of your salary. Starting at 25, aim for 12.5%. Many employers match contributions · always contribute at least enough to get the full employer match. Auto-enrolment minimum is 8% of qualifying earnings (3% employer, 5% employee) in 2026/27.

UK Pension Calculator 2026/27 · Retirement Pot Estimator

Q: What is the pension annual allowance for 2026/27?

The annual allowance for pension contributions in 2026/27 is £60,000 (or 100% of your earnings if lower). High earners with adjusted income above £260,000 have a tapered allowance, reducing to a minimum of £10,000.

Estimated Pension Pot at Retirement

£0

Monthly income: £0 (4% drawdown)

Your Contributions Total

£0

Employer Contributions Total

£0

Investment Growth

£0

State Pension Annual

£11,502

Total Annual Retirement Income

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Years to Retirement

Enter your details to see your retirement projection.

Pension Pot Growth Over Time

How UK Pensions Work

Auto-Enrolment: Since 2012, employers must automatically enrol eligible workers into a workplace pension. The minimum total contribution is 8% of qualifying earnings (employer minimum 3%, employee minimum 5%). Qualifying earnings for 2026/27 run from £6,240 to £50,270.

Annual Allowance: The maximum you can contribute to pensions each year while receiving tax relief is £60,000 (or 100% of your earnings if lower). Exceeding this triggers a tax charge.

State Pension: The full new State Pension for 2026/27 is £11,502 per year (£221.20 per week). You need 35 qualifying National Insurance years for the full amount and at least 10 years for any State Pension. You can check your NI record via the Government Gateway.

Pension Access: You can currently access private pensions from age 55 (rising to 57 in 2028). Taking money earlier can result in large tax charges unless in exceptional circumstances.

Pension Pot Projections · How Much Will I Have at Retirement?

Estimated pension pot at age 65 based on monthly contributions and 6% annual growth (before charges). Starting from age 25, 35 or 45.

Monthly Contribution	Starting Age 25	Starting Age 35	Starting Age 45
£100/mo	£199,000	£100,000	£45,000
£200/mo	£398,000	£200,000	£91,000
£300/mo	£597,000	£300,000	£136,000
£500/mo	£995,000	£499,000	£227,000
£750/mo	£1,492,000	£749,000	£341,000
£1,000/mo	£1,989,000	£999,000	£454,000

Projections assume 6% annual growth, no charges deducted, no inflation adjustment. Actual returns will vary. Tax relief boosts your effective contribution · a £100 basic-rate contribution only costs you £80 out of pocket.

Pension Calculator FAQs

How much pension do I need to retire in the UK?

The PLSA Retirement Living Standards put a moderate retirement at £31,300/year and a comfortable retirement at £37,300/year for a single person. Using a 4% drawdown rule, a £31,300/year target requires a pot of around £500,000 · excluding the state pension (£11,502/yr), which reduces the amount you need to draw from your private pension.

What is the pension annual allowance for 2026/27?

The annual allowance is £60,000 (or 100% of earnings if lower) for 2026/27. High earners with adjusted income above £260,000 face a tapered allowance, reducing to a minimum of £10,000. Exceeding the allowance triggers a tax charge on the excess at your marginal rate.

How much is the state pension in 2026/27?

The full new State Pension is £11,502 per year (£221.20 per week) in 2026/27. You need 35 qualifying National Insurance years for the full amount and at least 10 years to receive any state pension. You can check your NI record and forecast via the Government Gateway.

When can I access my pension?

You can access defined contribution pensions from age 55 · rising to 57 in April 2028. The State Pension age is currently 66, rising to 67 between 2026 and 2028. Taking pension money early significantly reduces your pot through lost growth. The first 25% of your pension pot can be taken as a tax-free lump sum up to the lump sum allowance of £268,275.

Pension vs ISA · which is better for retirement saving?

Pensions benefit from upfront tax relief (a £100 contribution costs a basic-rate taxpayer only £80) and employer contributions, making them highly efficient. ISAs offer more flexibility · no minimum age for access and withdrawals are always tax-free. Most financial planners recommend maxing employer pension matching first, then using an ISA for additional savings to maintain flexibility.

UK Pension Calculator 2026/27

Pension Pot Projections · How Much Will I Have at Retirement?

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