What is auto-enrolment?

Auto-enrolment requires UK employers to enrol eligible workers into a workplace pension. Minimum contributions: 5% from the employee and 3% from the employer (8% total) on qualifying earnings between £6,240 and £50,270.

What is the pension annual allowance?

The annual allowance for 2025/26 is £60,000 or 100% of your earnings, whichever is lower. If you exceed this, you'll pay a tax charge on the excess.

How much is the State Pension?

The full new State Pension for 2025/26 is £230.25 per week (£11,973 per year). You need 35 qualifying years of National Insurance to receive the full amount.

How does pension tax relief work?

Basic rate taxpayers get 20% relief automatically. Higher rate (40%) and additional rate (45%) taxpayers claim extra relief through self-assessment. A £100 pension contribution effectively costs £80 for basic, £60 for higher, or £55 for additional rate.

UK Pension Calculator 2025/26 - Workplace Pension, Tax Relief & State Pension

Calculate Your Pension

Annual Salary (£) Required

Current Age Required

Retirement Age Required

Your Contribution (%) Required

Employer Contribution (%) Required

Current Pension Pot (£) Optional

Expected Growth Rate (%) Required

Annual Salary Growth (%) Optional

Projected Pension Pot

Total Contributions

Investment Growth

Annual Income (4% drawdown)

State Pension (2025/26)

Full new State Pension: £230.25/week (£11,973/year). This is in addition to your workplace pension. You need 35 qualifying NI years for the full amount.

Pension Breakdown

Year-by-Year Growth

Detailed Projection

Age	Salary	Your Contrib.	Employer Contrib.	Growth	Pot Value

UK Workplace Pension Explained

Since 2012, UK employers must automatically enrol eligible workers into a workplace pension scheme. Minimum contributions on qualifying earnings (£6,240–£50,270) are:

Contributor	Minimum Rate
Employee	5% (including tax relief)
Employer	3%
Total Minimum	8%

Many employers offer more generous schemes. Contributing above the minimum is one of the most tax-efficient ways to save for retirement.

Pension Tax Relief 2025/26

Pension contributions receive tax relief, effectively giving you “free money” from the government:

Tax Band	Relief Rate	£100 Costs You
Basic Rate (20%)	20%	£80
Higher Rate (40%)	40%	£60
Additional Rate (45%)	45%	£55

Annual Allowance: £60,000 (or 100% of earnings if less). Unused allowance can be carried forward for up to 3 years.

At retirement: You can take 25% of your pot tax-free (the “pension commencement lump sum”), capped at £268,275.

Related Calculators

Frequently Asked Questions

Auto-enrolment requires UK employers to automatically enrol eligible workers (aged 22+, earning over £10,000) into a workplace pension. You can opt out but lose employer contributions. Minimum total contribution is 8% of qualifying earnings.

Currently from age 55 (rising to 57 in April 2028). You can take 25% tax-free, then either buy an annuity or use drawdown. State Pension age is currently 66, rising to 67 by 2028 and 68 by 2046.

The 4% rule suggests you can withdraw 4% of your pension pot each year in retirement while preserving the capital over 30+ years. A £500,000 pot would give £20,000/year. This is a guideline — actual sustainable withdrawal rates depend on market conditions and investment mix.

If your employer matches extra contributions, absolutely — it's free money. Even without matching, pension contributions are one of the most tax-efficient savings vehicles. Contributing 12-15% of salary (including employer) is a common target for a comfortable retirement.

A SIPP (Self-Invested Personal Pension) offers more investment choice and control. But always contribute enough to your workplace scheme to get the full employer match first. Many people do both — workplace for employer match, then SIPP for additional tax-relieved savings.