Forecast pension pot value and retirement income
A simple pension calculator assuming constant rates of investment growth and inflation each year.
All parameters used in the calculation are shown and can be adjusted using the form below.
- All values in the forecast table are in today's money adjusting for inflation.
- Retirement age:
Private pensions can be accessed from age 55, this will rise to 57 from 2028.
- Contribution tax relief:
The calculator applies 20% tax relief at source, which is paid directly into the pension pot.
Extra tax relief for higher and additional rate tax payers can be claimed back via a tax return.
The Annual income field is used to calculate the extra tax relief which can be claimed back.
See UK Government pension tax relief
- Inflation rate:
Most pension forecasts use a rate of 2.5% as recommended by the FSA.
See Historical inflation rates
- Retirement options:
Pensions can be accessed in a variety of ways. We illustrate two common options.
- Annuity + Lump sum:
Upto 25% of the pension can be taken as a tax free lump sum and the remaining pot used to purchase an annuity.
The annuity rate depends on the type of annuity and other factors including age. See Best buy annuity rates.
Pensions can be drawn down via the schemes Flexi-access drawdown or UFPLS.
We assume that the pot remains invested and continues to grow at a constant rate and a constant amount is
withdrawn each year. We assume that income is withdrawn at the start of each year and 25% is tax free.
- Tax deduction:
The tax deduction uses 2016-2017 tax rates.
See Current UK tax rates