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UK Retirement Calculator 2025/26 - SIPP, ISA & State Pension

Project your retirement corpus from current savings and monthly contributions. Inflation-adjusted target with safe withdrawal income.

Corpus at retirement
$1,719,009.77
Short $465,526.45

In today's money. We inflate it to your retirement year automatically.

4% is the standard (Trinity Study). Use 3.5% to be conservative.

Corpus at retirement
$1,719,009.77
Shortfall of $465,526.45
Required corpus
$2,184,536.22
At 4% withdrawal
Projected monthly income
$5,730.03
Inflation-adjusted expenses
$87,381.45
At retirement
Required monthly to hit goal
$1,310.29
Currently saving $1,000.00

Portfolio growth to retirement

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How to use the UK Retirement Calculator 2025/26 - SIPP, ISA & State Pension

  1. 1

    Enter your inputs

    Fill in the required fields at the top of the retirement calculator. Each input shows a default placeholder so you can see the expected format and units before you type.

  2. 2

    Adjust assumptions and options

    Use the toggles, sliders and dropdowns to tailor the calculation to your situation — currency, country, time period, advanced options and any optional fields all change the result in real time.

  3. 3

    Review the result

    The result card updates instantly as you type. Read the headline number, then check the breakdown, chart and any per-period schedule to understand how the inputs combined to produce the answer.

  4. 4

    Compare scenarios

    Change one input at a time to see how sensitive the result is to that variable. This is how you build intuition: small changes that move the answer a lot are the levers that matter.

  5. 5

    Share or save your result

    Copy the shareable link to send the exact scenario to someone else, or use your browser to print or save the page. The URL preserves every input so the recipient sees the same answer you do.

What this calculator does

UK retirement planning rests on four pillars: (1) State Pension - —230.25/week in 2025/26 if you have 35 qualifying NI years, paid from State Pension age (currently 66, rising to 67 in 2026-28 and 68 in 2044-46); (2) Workplace pension under auto-enrolment - minimum 8% combined contribution (3% employer, 5% employee), with most employers matching above the minimum; (3) Personal pension (SIPP) - flexible self-managed pension with tax relief at your marginal rate up to —60,000/year annual allowance; (4) ISAs - tax-free wrapper with —20,000/year allowance (Stocks & Shares ISA for long-term, Cash ISA for short-term, LISA for under-40s saving for retirement at age 60+). The 25% tax-free lump sum (up to —268,275 lifetime) at age 55+ is a UK-specific benefit; the remaining pot draws as taxable income or via flexi-access drawdown. The 4% withdrawal rule applies in principle but UK retirees should typically use 3.5% given longer life expectancy at retirement age.

Formula

Pot = S * (1 + r)^t + P * [((1 + i)^n - 1) / i] * (1 + i)
Pot
Projected pension pot at retirement age (in GBP)
S
Current pension savings (workplace + SIPP + ISA)
r
Annual expected pre-retirement return (typically 5-7% for diversified UK/global equity)
t
Years until retirement = retirement age - current age
P
Monthly contribution (incl. employer match and gross-up of basic-rate tax relief)
i
Monthly rate = r / 12
n
Total months = t * 12

Two terms: (1) lumpsum compounding on existing savings, (2) annuity future-value on ongoing contributions. Important UK detail: pension contributions are typically made from pre-tax salary (salary sacrifice) or with basic-rate (20%) tax relief automatically added at source - meaning every —80 contributed becomes —100 in the pension. Higher-rate (40%) and additional-rate (45%) taxpayers claim the rest via self-assessment. Sustainable annual income at retirement = Pot * 0.035 to 0.04. Combine this with the State Pension (—11,973 in 2025/26) and any other DB pension to get total retirement income. 25% of the pension pot (up to —268,275 lifetime) can be taken as a tax-free lump sum at age 55+ (rising to 57 in 2028). The remaining 75% is taxable as income via drawdown or annuity.

Worked examples

Example: 35-year-old earning —50K, —40K already saved, retire at 67

Age 35, current pension —40K, salary —50K, contributing 5% (—208/month) with 5% employer match (—208/month). Adding basic-rate tax relief on the employee 5% (effectively —52 gross-up): total monthly contribution = —468.

Pre-retirement return 6%, post-retirement 4%, inflation 3%, target retirement income —30K/year (today's pounds).

Years t = 32 Existing —40K * (1.06)^32 ~ —258K Monthly —468 at 6% for 32 years ~ —478K Projected pot ~ —736K

Target: —30K * (1.03)^32 = —77.3K/year at age 67 nominal. Subtract State Pension at —11,973/yr inflated at 3% for 32 years (triple-lock - 2.5% floor): —11,973 * (1.03)^32 = —30.8K. Net target income = —46.5K from pot. At 3.5% SWR: required pot = —46.5K / 0.035 = —1.33M.

Result: Projected —736K vs target —1.33M = ~—600K shortfall. Solutions: raise own contribution to 10% (employer typically matches to a cap; total contribution ~—720/mo gross) which closes ~—300K of the gap. Open a Stocks & Shares ISA for an additional —150/month to bridge the rest. Or extend retirement age to 70 (3 extra years of compounding + 3 fewer years of drawdown adds ~—250K of margin).

Example: 45-year-old higher-rate taxpayer with SIPP

Age 45, workplace pension —180K, SIPP —80K, salary —80K, putting —400/month into workplace (with 8% match) and —500/month into SIPP. On 40% marginal rate: —500 net SIPP contribution gets 20% basic-rate auto top-up to —625; reclaim 20% more (—125) via self-assessment - real effective contribution per —500 net is —625 in the pot.

Total monthly into pots: —400 + workplace match —640 (8% on —80K salary) + —625 SIPP = —1,665/month effective.

Pre-retirement return 6%, 20 years to retirement at 65.

Existing —260K * (1.06)^20 ~ —833K Contributions —1,665/mo at 6% for 20 years ~ —768K Projected pot ~ —1.60M

Target: —45K/yr retirement income today's pounds = —81K at age 65 (3% infl). Less State Pension —21.6K = —59.4K from pot. At 3.5% SWR = —1.70M target. Pretty much on track - delay 1 year or contribute a bit more.

25% tax-free lump sum on —1.60M = —400K (under the —268,275 PCLS cap, so capped at —268K). Remaining —1.33M drawn down as taxable income via flexi-access drawdown.

Common use cases

  • Sizing your SIPP contributions to fully use your —60K annual allowance
  • Maximising employer pension match - most UK employers contribute 3-10% if you contribute 5%+
  • Deciding between Stocks & Shares ISA vs SIPP - ISA for flexibility, SIPP for tax relief at your marginal rate
  • Using a LISA if under 40 - —4,000/year with 25% government bonus, accessible at age 60 for retirement
  • Calculating when you can retire at 55/57 (Minimum Pension Age) vs State Pension age (66-68)
  • Modelling impact of full vs partial State Pension based on your NI qualifying years (need 35 years for full new State Pension)
  • Choosing between annuity (guaranteed income for life) and flexi-access drawdown (flexibility, market risk)
  • Stress-testing under FIRE assumptions with a more conservative 3% SWR for longer UK retirement horizons

What affects the result

  • State Pension age - currently 66, rising to 67 from May 2026 and 68 from 2044 (review pending; may move earlier)
  • Minimum Pension Age - currently 55, rising to 57 in April 2028 - affects when you can access workplace/SIPP pensions
  • Annual Allowance —60,000 (2025/26) - tapered down to —10,000 for very high earners (above —260K adjusted income)
  • Tax relief - 20% (basic), 40% (higher), 45% (additional rate) - claimed automatically at basic rate; higher/additional via self-assessment
  • 25% tax-free lump sum (PCLS) capped at —268,275 lifetime under current rules - down from the abolished Lifetime Allowance
  • Triple-lock on State Pension - rises by the highest of CPI, average earnings growth or 2.5% each year (often outpaces CPI)
  • NI qualifying years - need 35 years for full New State Pension; 10 minimum for any State Pension at all
  • Salary sacrifice - reduces NI for both employee and employer; many companies pass the employer NI saving back as extra pension
  • Pension Wise / MoneyHelper free guidance available at age 50+ from the government

Tips

  • Contribute at least up to your employer match - it's an instant 100% return on those contributions
  • Use salary sacrifice if your employer offers it - saves NI for you (12% or 2% above the threshold) AND for them (often passed back as extra pension)
  • Higher-rate taxpayers: claim the extra 20% tax relief on personal pension contributions via self-assessment
  • If under 40, open a LISA - —4K/year with 25% government bonus = —1K free per year, accessible at 60 for retirement
  • Use a Stocks & Shares ISA alongside a SIPP for flexibility - ISAs can be accessed at any age without tax
  • Consolidate old workplace pensions into a single SIPP (provided no valuable guaranteed benefits) - easier to manage and lower fees
  • Check your State Pension forecast at gov.uk/check-state-pension and fill NI gaps via Class 3 voluntary contributions if cost-effective
  • Use the global stock market index (e.g., Vanguard FTSE Global All Cap, or HSBC FTSE All-World) as the core SIPP/ISA holding - low cost and well-diversified
  • Delay drawdown if you can live on State Pension + part-time income at first - extra compounding years materially increase sustainable retirement income
  • Take advice from a Chartered Financial Planner (CFP/STEP) for pots over —250K - 1% advisor fee on —500K = —5K/yr; can easily save more in tax and asset allocation

Mistakes to avoid

  • Not opting up to the employer pension match beyond auto-enrolment minimum - leaving free money on the table
  • Forgetting to claim higher/additional-rate tax relief on personal pension contributions via self-assessment - basic 20% is automatic, the rest is not
  • Cashing out a pension at age 55 without a plan - the 75% above the PCLS is taxed as income, often pushing you into higher brackets
  • Choosing a Cash ISA over a Stocks & Shares ISA for long-term retirement money - cash returns lag inflation badly
  • Ignoring the LISA if under 40 - the 25% government bonus is essentially free money on —4K/year
  • Holding high-fee actively managed funds in your SIPP - a 1% AMC drag eats roughly 20% of pension wealth over 30 years
  • Not checking your State Pension forecast on gov.uk - many people have NI gaps from years abroad, low earnings, or contracted-out periods
  • Failing to consolidate small old pension pots - admin friction often loses track of pots worth —20K-—50K each
  • Buying an annuity with the full pot when drawdown would offer more flexibility (annuity sales fell off a cliff after Pension Freedoms 2015 but they're right for some)
  • Underestimating UK life expectancy at 65 - currently ~85 for men and 87 for women in 2025; many retirees plan for 20 years and live 25+

Frequently asked questions

How much do I need to retire in the UK?

PLSA (Pensions and Lifetime Savings Association) defines three lifestyles: Minimum (—14,400 single/—22,400 couple), Moderate (—31,300/—43,100), Comfortable (—43,100/—59,000). Subtract State Pension of —11,973/yr (single) - so a single retiree wanting a Moderate lifestyle needs roughly —19,400/yr from their pot, which at 3.5% SWR requires a pot of ~—554K. For Comfortable lifestyle the pot target rises to ~—892K.

How does the State Pension work?

The New State Pension is —230.25/week (—11,973/year) in 2025/26 if you have 35 qualifying NI years. Paid from State Pension age (currently 66, rising to 67 from May 2026 and 68 by 2044). You need a minimum 10 NI years for any State Pension at all. The triple lock ensures it rises by the highest of CPI, average earnings or 2.5% each year.

When can I access my pension?

Workplace and personal pensions (including SIPP): age 55 currently, rising to 57 from April 2028. You can take 25% as a tax-free lump sum (capped at —268,275 lifetime under current rules). The remaining 75% is taxable as income via flexi-access drawdown, annuity purchase, or one-off withdrawals (UFPLS). LISA: age 60 (or with a 25% withdrawal penalty earlier). State Pension: State Pension age only.

SIPP vs ISA - which is better?

SIPP: tax relief on contributions (20%/40%/45% at marginal rate), 25% tax-free lump sum at access, remainder taxed as income on withdrawal. Locked until age 55 (57 from 2028). Stocks & Shares ISA: no tax relief on contributions, but all growth and withdrawals are completely tax-free, available anytime. Generally: higher-rate taxpayers favour SIPP (tax relief at 40% in, 20% out = arbitrage). Basic-rate taxpayers may prefer ISA for flexibility. Most retirees use a mix.

What is the LISA and is it worth it?

Lifetime ISA: —4,000/year max contribution, government adds 25% bonus (up to —1,000/year). For under-40s only; can be opened up to age 40, contributions allowed until age 50. Use for first home (up to —450K) OR retirement at age 60. Yes, almost always worth it for under-40s - the bonus is free money. Caveat: 25% withdrawal charge if used for any other purpose; lose 6.25% of capital plus the bonus.

How is my pension taxed when I withdraw?

25% can be taken as a tax-free lump sum (up to —268,275 lifetime). The remaining 75% is taxable as income at your marginal rate in the year of withdrawal. Strategy: spread withdrawals across multiple tax years to stay within basic-rate band (—12,571-—50,270 in 2025/26). Combine pension drawdown, ISA (tax-free) and State Pension for tax-efficient retirement income.

What happens to my State Pension if I have NI gaps?

You need 35 qualifying NI years for the full New State Pension. With fewer years you get a pro-rata amount. Common gap causes: years living abroad, low-earning years, contracted-out workplace pensions before 2016. Check your forecast at gov.uk/check-state-pension. You can usually buy missing years for —824 (Class 3) per year, which pays back in 3-4 years of retirement - excellent value if you have under 35 years.

Should I use annuity or drawdown?

Annuity: pays a guaranteed income for life, removes longevity risk, but you can't change the income or pass on the pot. Rates have improved sharply since 2022 with rising gilt yields. Drawdown: flexible withdrawals, pot continues to invest, residual passes to beneficiaries on death, but market risk and sequence-of-returns risk apply. Most modern UK retirees use drawdown for flexibility, optionally adding a small annuity for "floor" income. Mix of both is common for pots over —200K.

How much is the auto-enrolment minimum?

8% combined of qualifying earnings (—6,240 - —50,270 in 2025/26) under current rules: 3% employer minimum, 5% employee (4% net of basic-rate tax relief). Many employers match above the minimum - common to see 5% employer / 5% employee, some go to 10%/8%. Always check your employer's scheme; the match is the biggest single boost to your pension.

Last reviewed:

Sources & references

This calculator provides illustrative projections only and does not constitute financial advice under the Financial Services and Markets Act 2000. Pension and tax rules change frequently; figures are for 2025/26 tax year. For personalised guidance contact a Chartered Financial Planner (CFP) or use MoneyHelper / Pension Wise free guidance services.

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