Project your retirement savings growth and estimate your monthly income in retirement.
Rates as of Q2 2025 (example)
A retirement calculator projects how your current retirement savings, plus ongoing monthly contributions, could grow by your target retirement age, and estimates how much monthly income that balance might support using a common "safe withdrawal rate." It also compares this estimated income against your desired monthly income in retirement, showing whether you're on track or facing a potential shortfall.
The calculator compounds your current savings and monthly contributions monthly at your expected rate of return until your target retirement age. It then applies a 4% annual withdrawal rate — a commonly referenced (though debated) guideline for how much you might withdraw each year from a retirement portfolio without depleting it too quickly — to estimate a monthly income figure.
Formula: Each month: Balance = Balance × (1 + monthly return) + Monthly Contribution, where monthly return = Annual Return ÷ 12 ÷ 100, repeated until retirement age. Estimated Annual Income = Projected Savings × 4%. Estimated Monthly Income = Estimated Annual Income ÷ 12.
Example: Starting at age 30 with £20,000 in current savings, contributing £500/month, and assuming a 7% annual return (example rate — enter your expected rate) until age 65 (35 years), the projected savings would be roughly £1,130,000 — of which about £230,000 comes from contributions and about £900,000 from investment growth. Using the 4% rule, this supports an estimated monthly income of roughly £3,770 — against a £4,000 desired monthly income, this would be a shortfall of about £230/month. (Note: all figures in this example are for illustration purposes only and are not guaranteed.)
This calculator focuses on your personal retirement savings — typically held in workplace pensions, personal pensions (such as a SIPP), or ISAs — and doesn't include the UK State Pension, which is a separate source of retirement income based on your National Insurance contribution record (see the State Pension Calculator). Most UK employees are automatically enrolled into a workplace pension, with both employee and employer contributions, which can form a significant part of the "current savings" and "monthly contribution" figures you enter here. Pension contributions also receive tax relief, effectively boosting the amount that goes into your pension compared to the same amount saved outside a pension — though pensions have annual and lifetime contribution considerations set by HMRC that are worth checking with a financial adviser. The 4% withdrawal rate used here is a widely referenced rule of thumb, not a guarantee — actual sustainable withdrawal rates depend on investment returns, inflation, how long your retirement lasts, and market conditions in the years immediately following retirement.
No. This calculator projects growth of your personal retirement savings (pensions, ISAs, and other investments) only. The State Pension is a separate source of income based on your National Insurance contribution record — use the State Pension Calculator to estimate that separately and add it to your total expected retirement income.
The 4% rule is a commonly referenced guideline suggesting that withdrawing about 4% of your retirement portfolio in the first year, then adjusting for inflation in subsequent years, has historically had a reasonable chance of lasting through a typical retirement. It's a simplification, not a guarantee — actual sustainable rates depend on market returns, how long your money needs to last, and your spending flexibility.
No specific rate is "realistic" for everyone — the default is an example only. Expected returns depend heavily on your investment mix (e.g., more equities versus more bonds/cash), fees, and time horizon. Historical average returns for diversified portfolios have varied significantly, and future returns aren't guaranteed.
In the UK, pension contributions typically receive tax relief, meaning the amount that goes into your pension is higher than the amount it costs you from your take-home pay (the government effectively adds back tax you would have paid on that income). This calculator doesn't separately model tax relief — enter the actual amount going into your pension, including any tax relief, as your monthly contribution.
A shortfall means your projected savings, combined with the 4% withdrawal assumption, may not generate your desired monthly income. Options to address this could include increasing contributions, delaying retirement, adjusting your desired income, or reviewing your investment strategy — a financial adviser can help you model these options in more detail.
No. The projected savings and income figures are in today's pounds without adjusting for inflation. Over long time horizons, inflation can significantly erode purchasing power, so a desired monthly income that seems sufficient today may not stretch as far by the time you retire — consider this when setting your desired income figure.
Disclaimer: The information, rates, and figures provided on this page are for educational and illustrative purposes only and do not constitute financial advice or a guarantee of investment returns or retirement income. Investment returns can go down as well as up, and past performance is not a reliable indicator of future results. The 4% withdrawal rate is a simplified guideline, not a guarantee. Always consult a qualified financial adviser before making retirement planning decisions.