Pension Calculator UK: What Your Pot Really Pays
Quick answer
As a rough rule, a pension pot safely provides about 4% a year. A GBP 300,000 pot gives around GBP 12,000 a year before the State Pension, which adds GBP 12,548 more. Our calculator projects your pot; this guide turns that pot into a monthly income in today money.
What a UK pension pot pays in retirement (drawdown, today money)
| Pension pot | At 4% a year | At 3.5% a year (cautious) |
|---|---|---|
| GBP 100,000 | GBP 4,000/yr (GBP 333/mo) | GBP 3,500/yr (GBP 292/mo) |
| GBP 150,000 | GBP 6,000/yr (GBP 500/mo) | GBP 5,250/yr (GBP 438/mo) |
| GBP 200,000 | GBP 8,000/yr (GBP 667/mo) | GBP 7,000/yr (GBP 583/mo) |
| GBP 300,000 | GBP 12,000/yr (GBP 1,000/mo) | GBP 10,500/yr (GBP 875/mo) |
| GBP 500,000 | GBP 20,000/yr (GBP 1,667/mo) | GBP 17,500/yr (GBP 1,458/mo) |
Step by step
- 1
Project your pot
Use our drawdown calculator to estimate the pot you will have at retirement from your current savings and contributions.
- 2
Apply a safe withdrawal rate
Multiply the pot by about 4% (or 3.5% to be cautious) for a sustainable yearly income that has a good chance of lasting 30 years.
- 3
Add the State Pension
Add the full new State Pension of GBP 12,548 a year once you reach State Pension age, and check your own forecast on gov.uk.
- 4
Compare against a benchmark
Measure the total against the PLSA Retirement Living Standards: GBP 13,900 minimum, GBP 32,700 moderate or GBP 45,400 comfortable for a single person.
- 5
Adjust for tax and inflation
Remember income tax applies above your Personal Allowance, and quote everything in today money so future inflation does not flatter the figure.
Every pension calculator hands you a big projected pot and stops. The harder question is what that pot actually pays you each month, and the honest answer is smaller than the headline suggests. Use our drawdown calculator to project the pot, then use the table above to translate it into a sustainable income in today money. The 4% figure is a widely used rule of thumb, not a guarantee - it comes from historical studies of how long a pot lasts, and the value of investments can fall as well as rise.
Two things the provider calculators tend to bury. First, inflation: a projection that grows your pot at 5% a year looks impressive until you strip out rising prices, which is why we quote everything in today money. Second, the State Pension - the full new State Pension is worth GBP 12,548 a year, the equivalent of a GBP 300,000-plus pot at a 4% withdrawal rate, and it is the floor under everyone. Fold it in and your private pot only has to bridge the gap to the standard of living you want.
For the fuller picture, see how much you need to retire, the 4% safe withdrawal rate explained, and how much pension you should have by age. Figures are illustrative and stated in today money; the value of investments can fall as well as rise. This is general information, not financial advice; tax and pension rules can change, and a regulated adviser can model your own position.
Frequently asked questions
How much will a 150k pension pay in the UK?
At a 4% safe withdrawal rate a GBP 150,000 pot provides around GBP 6,000 a year (GBP 500 a month) from drawdown, before tax. Add the full new State Pension of GBP 12,548 a year once you reach State Pension age, giving roughly GBP 18,500 a year in total.
How long will a 300k pension last?
It depends on how much you draw. At GBP 12,000 a year (4%) a GBP 300,000 pot has a good chance of lasting 30 years or more if it stays invested; draw GBP 20,000 a year and it could run dry in 15 to 20 years, especially if markets fall early in retirement.
What is a good monthly pension amount in the UK?
The PLSA Retirement Living Standards put a single person moderate retirement at GBP 32,700 a year (about GBP 2,725 a month) and comfortable at GBP 45,400. The full State Pension covers roughly GBP 1,046 a month of that, so your private pension needs to bridge the rest.
Can I retire at 60 and still get the full State Pension?
You can stop working at 60, but you cannot draw the State Pension until State Pension age, which is 66 and rising to 67 between 2026 and 2028. You would need to fund the gap years from a private pension (accessible from 55, rising to 57 in 2028) or other savings.
Why is my provider pension calculator more optimistic?
Provider tools often assume around 5% nominal growth before charges and inflation, which flatters the projected pot. A more honest approach uses a real (after-inflation) return and states the answer in today money, so the number reflects what it will actually buy.
Sources
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General information, not financial advice. Tax rules and figures can change; check the current position on gov.uk before acting.