Salary sacrifice saves NI too. Relief at source is common in SIPPs and some workplace schemes.
3
Assumptions
Annual return (real, after inflation)
5%
5% is a reasonable central assumption for a global equity fund. Results shown in today's money.
Include State Pension?
Full new State Pension is £12,548/yr (2026). Needs 35 NI years.
Projected pension pot at retirement
£—
in today's money · — years to grow
Annual income
—
Monthly income
—
Total inc. State Pension
—
Retirement income breakdown
Based on 4% annual drawdown from pension pot
Pension pot drawdown
4% of pot per year
—
State Pension
Full new State Pension 2026
£12,548
Total annual retirement income
—
vs. 15% total contribution target
0%15% target30%
—
Pension pot growth
Projected pot
Contributions only
Monthly contribution breakdown
Your gross contribution
—
Tax relief (20% basic rate)
—
NI saving (salary sacrifice)
—
Your actual cost per month
—
Employer contribution
—
Total into pension per month
—
Return scenarios — projected pot
Cautious (3%)
—
— /yr
Central (5%)
—
— /yr
Optimistic (7%)
—
— /yr
⚠️ This calculator provides illustrative projections only. It assumes a constant contribution rate and return, no salary growth, and that contributions are made monthly. Actual pension values will vary. This is not financial advice. For defined benefit (DB) pensions, contact your scheme administrator directly.
It depends on your contributions, employer match, investment return, and time. A useful rule of thumb: aim for a pot of around 25 times your desired annual income. With the State Pension providing ~£12,548/year, you need your private pension to cover the rest.
The auto-enrolment minimum is 8% total (3% employer, 5% employee on qualifying earnings). Most financial planners suggest 15% of gross salary total is needed for a comfortable retirement. The earlier you start at 15%, the more compound growth does the work for you.
With relief at source, you get income tax relief (20% basic, 40% higher rate) but still pay National Insurance on the full salary. With salary sacrifice, your gross salary is reduced before NI is calculated — so you save NI contributions too (typically 8% for basic rate taxpayers in 2025/26).
For a globally diversified equity fund, 4–5% real return (after inflation) is a reasonable central assumption over long periods. Use 3% for a cautious projection, 7% for an optimistic one. All figures here are shown in today's money so they're meaningful when you get there.
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