What This Calculator Shows You
Your workplace pension has three engines working at once: the slice of salary you sacrifice, the match your employer adds on top, and the tax relief the government grosses up. This tool pulls those apart so you can see each part in pounds rather than percentages, then projects the combined pot forward to your chosen retirement year. Adjust your contribution percentage and watch how a single point up or down changes both the monthly cost to you and the size of the pot decades later.
A Worked Example on a £35,000 Salary
Say you earn £35,000, pay in 5%, and your employer matches 3% on qualifying earnings (the band from £6,240 to £50,270, which here is £28,760). Your 5% is about £1,438 a year, roughly £120 a month, and basic-rate relief grosses that up by 25%. Your employer adds around £863. That is close to £2,300 landing in the pot each year before growth. Left to compound at 5% a year for 30 years on top of an existing £10,000 pot, contributions like that can build into a six-figure fund, and the calculator shows the exact figure for your inputs.
Where It Fits in Your Retirement Picture
A workplace pension is one of three layers most UK retirees rely on: the State Pension (about £221.20 a week at the full rate, earned through 35 National Insurance years), your workplace scheme, and any private savings. This calculator only models the workplace layer, so a realistic plan means checking your NI record separately on gov.uk to see what the State Pension will add. Together those two tell you far more than either does alone.
UK Workplace Pension Calculator
How It Works
Enter your salary, your contribution percentage, your employer's percentage, and a growth assumption. The calculator splits out what you pay, what your employer adds, the basic-rate tax relief topped up on your share, and where the pot could land by your target retirement year using compound growth.
The basic rule:
- Qualifying Earnings = Salary between £6,240 and £50,270
- Tax relief (basic rate) = Employee contribution x 25%
- Projected pot = Current pot x (1+r)^n + monthly contributions compounded
- Estimated income = Pot x 4% sustainable drawdown rate
Growth is never a straight line, so treat the projected pot as one plausible scenario rather than a promise. Rerun it with a lower growth rate to see the cautious case, and check your actual scheme rules for whether contributions are on qualifying earnings or your full salary.
Frequently Asked Questions
How many qualifying years do I need for the full new State Pension?
You typically need 35 qualifying National Insurance years for the full new State Pension, which is about £221.20 a week in 2024/25. This tool is a workplace pension calculator and covers your employer scheme, not the State Pension, but the two stack: your workplace pot sits on top of whatever State Pension your NI record earns you.
What is the minimum I have to pay into a workplace pension?
Under auto-enrolment the minimum total is 8% of qualifying earnings (the slice of pay between £6,240 and £50,270 in 2024/25): at least 3% from your employer and 5% from you, with tax relief forming part of your share. On a £35,000 salary that qualifying slice is £28,760, so the 8% minimum is roughly £2,301 a year going into the pot.
Are contributions worked out on my whole salary or just part of it?
It depends on your scheme's definition. The auto-enrolment default is qualifying earnings, which ignores the first £6,240 and anything above £50,270. Some employers instead use basic pay or total pay, which usually means more money in for the same percentage. Check your scheme, then set this calculator's percentages to match how yours is defined.
How does the tax relief in the results work?
For every £4 you contribute from taxed pay in a relief-at-source scheme, the provider reclaims £1 of basic-rate tax, so your money is grossed up by 25%. Higher-rate (40%) and additional-rate (45%) taxpayers can claim the extra relief through Self Assessment or by contacting HMRC. The calculator shows the basic-rate top-up added to your contribution.
Can I fill gaps or boost what I'll retire on?
For your workplace pension, paying above the 5% minimum is the main lever, and many employers will match higher contributions up to a cap, so ask before you settle for the default. Separately, for the State Pension you can plug gaps in your NI record with voluntary Class 3 contributions. Confirm your NI years and any shortfall on gov.uk before paying.
When can I access my workplace pension pot?
Normally from age 55, rising to 57 from 2028. You can usually take 25% tax-free and use the rest for drawdown or an annuity. Taking money early can trigger tax and shrink what compounds over your remaining years, which is why the projected pot in the results assumes you leave it untouched until your target retirement date.