UK Pension Calculator
Estimate your workplace or SIPP pension pot at retirement including employer contributions and tax relief. Free, no sign-up, results update as you type.
Details
Result
Pension at Retirement
£494,154
Total Contributed
£159,000
Growth
£335,154
25% Tax-Free Lump Sum
£123,538
75% Taxable Drawdown
£370,615
For estimation only. Not professional financial, tax, or legal advice. Consult a qualified advisor before making decisions. Full disclaimer.
How UK pension tax relief works
Basic-rate (20%) relief is added at source — your £80 contribution becomes £100 in your pension. Higher-rate (40%) and Additional-rate (45%) taxpayers claim the extra 20-25% via self-assessment. See HMRC: Tax on your private pension contributions. This calculator assumes you\'ve already accounted for relief in the contribution amount.
Access from age 55 (rising to 57 from 2028)
Take 25% of your pot tax-free as a lump sum. The remaining 75% is taxed at your income rate when drawn — ideally drawn gradually to stay in the basic-rate band.
Common questions about Pension
What is pension tax relief?+
Basic-rate taxpayers get 20% relief automatically (your £80 contribution becomes £100). Higher-rate (40%) and additional-rate (45%) taxpayers claim the rest via self-assessment.
Lump sum tax-free at retirement?+
You can take 25% of your pension pot tax-free from age 55 (rising to 57 from 2028). The remaining 75% is taxed as income when drawn.
What is the Annual Allowance?+
£60,000 per tax year for pension contributions qualifying for tax relief (2026/27). Tapered for high earners: adjusted income above £260,000 reduces AA by £1 per £2, floor £10,000 at £360,000 income. Carry forward up to 3 years of unused AA (requires being a scheme member in those years). Money Purchase Annual Allowance (MPAA) of £10,000 triggers once you flexibly access a pension — careful with small pots if still working.
SIPP vs workplace pension — what's the difference?+
Workplace: employer-run, comes with employer contributions (minimum 3% auto-enrolment + your 5%), limited fund choice. SIPP (Self-Invested Personal Pension): platform-based (Vanguard SIPP, AJ Bell, Hargreaves Lansdown), wide investment choice (thousands of funds, ETFs, individual shares), no employer contribution but same tax relief on your input. Ideal setup: workplace pension to capture full match, SIPP for additional contributions above that.
When can I access my pension?+
From age 55 currently, rising to 57 on 6 April 2028. Early access is only permitted on ill health or protected low-age scenarios (certain sports/professions with old pensions). Options at minimum pension age: (1) 25% tax-free lump sum + 75% in drawdown, (2) full encashment (most of pot taxed as income, can push you into higher bands — usually a bad idea), (3) annuity purchase with the 75% for guaranteed income, (4) leave invested and access flexibly later.
What happens to my pension pot when I die?+
Defined Contribution pensions typically sit outside your estate for Inheritance Tax (though the Autumn 2024 Budget announced IHT inclusion from April 2027 — monitor legislation). Death before 75: beneficiaries usually receive the pot tax-free as lump sum or income. Death at 75+: beneficiaries pay Income Tax at their marginal rate on withdrawals. Complete a "nomination of beneficiaries" form with your provider — without one, trustees have discretion but payouts are slower and may miss your intended recipients.