Mortgages & Money2 min check

Retirement Savings Calculator

Estimate the size of your pension pot at retirement, plus a rough sustainable income using the 4% rule.

Short answer

Retirement savings projection: future pot = current pot × (1+r)^n + monthly contribution × [((1+r)^n − 1) ÷ r], where r is monthly real return and n is months. Real returns of 4–5%/year above inflation are a reasonable long-term assumption for a balanced portfolio.

Step 1 of 20%

How it works

Standard compound interest with regular contributions. We project in 'real' (today's money) terms so the answer is meaningful for retirement planning.

Worked example

Age 35, £30k pot, £400/m contributions, retire at 67 (32 years), 5% real return → ~£540,000 in today's money.

Who should use this

•Adults checking long-term pension/ISA progress
•People weighing pension vs ISA splits
•Anyone setting a retirement target

Common mistakes

×Using nominal returns without subtracting inflation
×Forgetting employer pension match — often 'free money'
×Stopping contributions during salary rises instead of increasing them
×Switching to cash too early — bonds + equities still grow in retirement

Frequently asked questions

Pension or ISA?▾

Pension wins on tax (relief in, taxed out at lower rate). ISA wins on flexibility (access anytime). Most people benefit from both.

How much should I save into pension?▾

Rule of thumb: half your starting age as a % of salary. Start at 25 → 12.5%. Start at 40 → 20%.

What return should I assume?▾

5% real (above inflation) for global equities long-term. Use 3–4% for a more conservative balanced portfolio.

Related calculators

Pension Gap →Compound Interest →ISA Calculator →Pension Drawdown →