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Pensions & RetirementRetirement

Retirement Target Calculator

Inputs

The percentage of the pot you plan to take each year. A lower rate needs a bigger pot but is more cautious.

State Pension

Results

Enter values and calculate to see results.

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Disclaimer: Illustrative projection based on the figures and assumptions entered. Pension pot growth is not guaranteed, investment values can fall as well as rise, and statutory retirement rules or tax relief rates may change. For personal retirement planning, consult an FCA-regulated financial adviser or contact Pension Wise.

The pot you need, once the State Pension is counted

Counting the State Pension changes the arithmetic completely. It covers a large share of a typical target income, so the pot only has to fund what is left.

Figures stated for the 2026/27 UK tax year. Content last checked against official sources on .

What this calculator does

  • Works out the pot needed to hit a target retirement income.
  • Deducts the State Pension entitlement from the income the pot must provide.
  • Compares the required pot with what your contributions are projected to reach.
  • Solves for the monthly contribution needed to close any shortfall.

How the calculation works

The calculation starts from the income you want and subtracts what the State Pension will provide, because only the remainder has to come from your own savings. That step matters more than any other input: a full State Pension is £12,547.60 a year, so on a £30,000 target it covers over 40% of the requirement before your pot does anything at all. The income still needed is divided by your chosen withdrawal rate to give the target pot. Separately, your current pot and monthly contributions are compounded forward to retirement. Comparing the two gives a surplus or a shortfall, and where there is a shortfall the required monthly contribution is solved directly rather than found by trial and error, so the answer is exact rather than approximate.

The rule

Income needed from the pot = target income − State Pension. Target pot = income needed ÷ withdrawal rate. Compare against the projected pot to give the surplus or shortfall.

Step by step

  1. Estimate the State Pension from qualifying years, if it is being included.
  2. Subtract it from the target income to give the income the pot must provide.
  3. Divide by the withdrawal rate to give the target pot.
  4. Compound the current pot and monthly contributions forward to retirement.
  5. Compare the two, and solve for the contribution needed to close any gap.

Worked example

Someone wanting £30,000 a year in retirement, with £100,000 saved, paying in £500 a month for twenty-five years at 5% growth, a 4% withdrawal rate and a full State Pension record.

What was entered

Inputs used in the worked example
Target retirement income£30,000 a year
Current pension pot£100,000
Monthly contribution£500
Years to retirement25
Annual growth5%
Withdrawal rate in retirement4%
Include the State Pension?Yes
State Pension qualifying years35

The arithmetic

  1. A full 35-year record gives a State Pension of £12,547.60 a year.
  2. That leaves £30,000 − £12,547.60 = £17,452.40 to come from the pot.
  3. At a 4% withdrawal rate the pot needs to be £436,310.
  4. £100,000 plus £500 a month compounded at 5% for twenty-five years projects to about £631,503.
  5. That is a surplus of roughly £195,193, so this plan is comfortably on track.
  6. Only about £167 a month would be needed to hit the target — the current £500 is building a considerable margin.

What the calculator returns

Results produced by the worked example
State Pension£12,547.60
Income needed from your pot£17,452.40
Target pot£436,310.00
Projected pot£631,502.75
Surplus£195,192.75
Monthly contribution actually required£166.76

Key assumptions

  • The State Pension is estimated from qualifying years, and is assumed to be payable from the start of retirement.
  • The target income is treated in the same money terms as the growth rate entered.
  • The withdrawal rate is assumed sustainable for as long as the income is needed.

Limitations

  • This is not a State Pension forecast. Records that began before April 2016 follow transitional rules, contracted-out periods reduce entitlement, and the State Pension age is later than most target retirement ages — so it may not be payable from day one.
  • Figures are in today's money only if the growth rate you entered is a real rate above inflation. A nominal rate makes the projected pot look larger than it is.
  • Tax in retirement is not deducted, and the State Pension is taxable, so the net income will be lower than the target.
  • Other pensions, ISAs and property are not counted, which understates most people's position.
  • This is a projection, not advice.

Common questions

How much difference does the State Pension make?
A great deal. At £12,547.60 a year it covers over 40% of a £30,000 target, and because the pot only has to fund the remainder at a 4% withdrawal rate, including it cuts the required pot by more than £300,000 in this example.
Can I rely on 35 qualifying years?
Only if your record supports it. Thirty-five years gives the full new State Pension where your record began after April 2016; records starting earlier, particularly with contracted-out periods, often need more. Check your actual forecast on GOV.UK.
Is the projected pot in today's money?
Only if the growth rate you entered is already net of inflation. If you entered a nominal rate, both the pot and the target are in future pounds and the comparison still holds — but the figures buy less than they appear to.
Why is the required contribution so much lower than what I am paying?
Because the existing pot is doing a lot of the work: £100,000 compounding for twenty-five years grows substantially on its own. The surplus is the margin your current contributions are building beyond the target.

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Official sources

Every figure in this guide was checked against the sources below. Where a source could not confirm a figure, it is marked as requiring verification rather than presented as settled.