Pension Gap Calculator
How it works
We project your current pot to retirement age using assumed growth, add ongoing contributions, then convert to a sustainable annual income (typically 4% safe withdrawal rate). Compare against your target income to see the gap, then work out the extra contribution needed to close it.
Worked example
Age 40, £50k pot, £300/m contributions, retire at 67, target £25k/year. Projected pot at 67: ~£280k → £11,200 income. Plus £11,500 State Pension = £22,700. Gap of £2,300/year — solved by adding ~£75/month more.
Who should use this
- •People in their 30s–50s reviewing pension on track
- •Anyone considering increasing contributions
- •Couples comparing combined pension provision
Common mistakes
- ×Forgetting State Pension (~£11,500/year if full NI record)
- ×Assuming you can rely on house equity downsizing alone
- ×Not increasing contributions when salary rises
- ×Ignoring 25% tax-free lump sum and tax in drawdown
Frequently asked questions
How much do I need to retire?▾
PLSA: £14,400 for minimum, £31,300 moderate, £43,100 comfortable (single person, 2024).
What's the 4% rule?▾
A rule of thumb that says you can withdraw 4% of your pot annually, increasing with inflation, with high probability of not running out over 30 years.
Should I take the 25% tax-free lump sum?▾
Only if you have a use for it. Leaving it invested may grow further; taking it loses future tax-free growth on that portion.