Pension Contribution Calculator
Estimate the size of your pension pot at retirement. Includes employee and employer contributions, basic-rate tax relief (20%), and compound investment growth.
UK auto-enrolment minimums: 5% employee + 3% employer (on qualifying earnings). Tax relief at source means HMRC adds 20% to your contributions — effectively your 5% costs you 4% net. This calculator does not account for salary increases, changing contributions, or charges/fees.
Related: Retirement Savings · Pension Lump Sum · Take-Home Pay
How the pension contribution calculator works
UK workplace pensions operate under auto-enrolment rules, which require all employers to automatically enrol eligible workers into a pension scheme. The minimum contribution is 5% from the employee and 3% from the employer, based on qualifying earnings. Your employer's contribution is essentially free money added on top of your salary — one of the most valuable benefits available to employees.
Under relief at source, HMRC automatically adds basic-rate tax relief (20%) to your contributions. In practice, your 5% contribution only costs you 4% of your net pay, while 5% lands in your pension. Higher-rate taxpayers can claim further relief through self-assessment. The annual allowance for 2024/25 is £60,000 — the maximum on which you can receive tax relief in a single year. All contributions grow tax-free inside the pension wrapper, with no capital gains or income tax on investment returns. Starting early is crucial: thanks to compound growth, money invested in your twenties has decades to multiply, making early contributions far more powerful than equivalent contributions closer to retirement.
Frequently asked questions
What is auto-enrolment?
All employers must automatically enrol eligible workers (aged 22 to state pension age, earning over £10,000 per year) into a workplace pension. Minimum contributions are 5% from the employee plus 3% from the employer, calculated on qualifying earnings. You can opt out, but you will lose your employer's contributions.
How does pension tax relief work?
Basic rate taxpayers get 20% tax relief added automatically to their contributions under relief at source. If you contribute £80, HMRC adds £20, making £100 into your pension — so it only costs you £80 to get £100 invested. Higher rate taxpayers pay 40% tax and can claim an additional 20% relief through self-assessment, effectively meaning a £100 pension contribution costs only £60.
What is the pension annual allowance?
The annual allowance is the maximum amount you can contribute to all your pensions and receive tax relief in a single tax year. It is currently £60,000 for 2024/25, or 100% of your earnings if that is lower. Exceeding the allowance results in a tax charge on the excess. Most people are unlikely to exceed this limit, but high earners with substantial employer contributions should be aware of it.
When can I access my pension?
The minimum pension access age is currently 55, rising to 57 in 2028. From that age you can typically take up to 25% as a tax-free lump sum, with the remainder subject to income tax as you draw it down. The state pension age is currently 66, rising to 67 between 2026 and 2028. You do not have to stop working to access your private pension.