Mortgages & Money2 min check

Pension Gap Calculator

See the shortfall between your projected retirement income and your target — and how much extra to save monthly to close it.

Short answer

The 'pension gap' is the difference between the income you'll need in retirement and what your current pot + State Pension will provide. The PLSA estimates a 'moderate' UK retirement needs £31,300/year for one person, £43,100 for a couple (2024 figures).

Step 1 of 20%

Calculation method, coverage and version

Inputs used: Current age, Target retirement age, Current pension pot (all schemes), Total monthly contribution (you + employer), Desired annual income in retirement, Will you get full UK State Pension (~£11,500/yr)?.
Calculation approach: The calculator applies the rules and assumptions described in “How it works” to the values you enter. Rounding can cause small differences from an official or provider calculation.
Coverage: Mortgages & Money. UK nations, tax treatment, local rules and provider criteria can differ; check the official sources shown below before acting.
Content version: No page-specific review date is currently published. Treat the result as indicative and verify current rules independently.

Not included unless explicitly requested: personal circumstances not entered, provider discretion, future rule changes, professional fees and case-specific exceptions. Read the full calculator methodology.

Primary sources and official verification

Use these official sources to verify current rules before acting. Coverage and dates can differ across England, Scotland, Wales and Northern Ireland.

See the sitewide source policy.

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.

Related calculators

Retirement Savings →Pension Drawdown →Annuity Calculator →State Pension Forecast →