Pension Pot
Calculator 2025/26

The Pensions and Lifetime Savings Association (PLSA) suggests you need around £37,000/year for a comfortable retirement and £23,300 for a moderate lifestyle. The full State Pension of £11,973/year (2025/26) reduces the amount you need from your private pension. A rule of thumb is a pot of 25× your desired annual income from private sources.

The full new State Pension for 2025/26 is £230.25 per week — £11,973 per year. You need 35 qualifying years of National Insurance contributions to receive the full amount. You can check your State Pension forecast at gov.uk/check-state-pension.

The 4% rule is a guideline suggesting you can withdraw 4% of your pension pot per year in retirement without running out of money over a 30-year period. So a £500,000 pot would generate £20,000/year. It is a rule of thumb, not a guarantee — real returns, inflation and your actual lifespan all vary.

Pension contributions receive tax relief at your marginal rate — a basic rate taxpayer investing £80 gets £100 in their pension. Employer contributions are essentially free money. Increasing contributions, especially when your employer matches them, is often the most tax-efficient way to build wealth for retirement.