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2025/26 Tax Year

UK Pension Calculator

See how your workplace pension could grow. Estimate your retirement pot based on your salary, contributions and investment growth.

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How UK Workplace Pensions Work

Under auto-enrolment, your employer must enrol you into a workplace pension if you're aged 22 or over and earn at least £10,000 per year. The minimum total contribution is 8% of qualifying earnings — your employer pays at least 3% and you contribute 5% (which includes tax relief from the government). Qualifying earnings for 2025/26 are the portion of your salary between £6,240 and £50,270.

The Power of Starting Early

The earlier you start contributing, the more time compound growth has to work. Someone starting at 25 with modest contributions will typically build a larger pension pot than someone contributing more but starting at 40. Even small increases to your contribution rate — say from 5% to 7% — can add tens of thousands to your final pot over a 30-year career.

Should You Contribute More Than the Minimum?

Financial advisers often suggest contributing at least 12-15% of salary (including your employer's contribution) for a comfortable retirement. The minimum 8% may not be enough, especially if you start saving later in life. Every extra pound you contribute also reduces your income tax bill, making pension contributions one of the most tax-efficient ways to save.

Tax Relief on Pension Contributions

Your pension contributions receive tax relief automatically. For basic rate taxpayers, a £100 contribution only costs you £80 — the government adds the other £20. Higher rate taxpayers can claim additional relief through self-assessment, effectively meaning a £100 contribution costs just £60. The annual allowance for total pension contributions is £60,000 for 2025/26.

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