How to calculate your future pension pot
A pension pot grows from three things: what you pay in, what your employer adds, and compound investment returns over time. Small differences in contribution rate and charges compound into very large differences by retirement.
The rule
Future pot = current pot × (1 + return)^years + annual contributions compounded each year
Do it automatically — Pension pot projectorStep by step
- 1Start with your current pot value.
- 2Add your annual contribution plus your employer's contribution.
- 3Apply an expected annual return net of charges — 4–5% real is a common planning assumption.
- 4Compound over the years to retirement, then convert to income using a safe withdrawal rate or annuity rate.
What trips people up
- • Quoted returns are usually nominal; subtract inflation to think in today's money.
- • A 1% annual charge can cost roughly a fifth of the final pot over a full career.
Common questions
How much should I contribute?
A common rule is half your age at the point you start, as a percentage of salary, including employer contributions.
What income will my pot give me?
A 4% withdrawal rate is the usual starting estimate for a sustainable income.
Skip the maths
Model contributions, growth and drawdown to see your future pot and income.
Open the growth to retirement tool