Pension Match Calculator
Your employer is offering you free money. Find out how much you leave on the table by saying no.
Learn how this calculator works →"I'd rather have the money now."
Fair enough. A pound you cannot touch until you are 57 genuinely is worth less than a pound in your pocket today. No argument there.
But your employer is offering to add free money on top of every pound you contribute, and the government chips in more through tax relief. The question is not whether the lock-in costs you. It does. The question is whether the free money more than makes up for it.
Plug in your numbers and find out.
Your details
We default to 2.5%, roughly the Bank of England's inflation target. If you think you could earn more with accessible money, increase it.
What happens to my data?
For every £1 you put in
£1.85
lands in your pension
But you can't touch it for 36 years, so that £1 is really worth
£0.76
Below £1 - at your discount rate, the lock-in outweighs the free money.
The offer on the table
Yes, it's locked away
You cannot touch this money for 36 years (until age 57). That is a real cost.
After discounting at 2.5% for the lock-in, the £193 going in each month is worth £79 in today's money. We do not apply expected growth here - you would get the same growth in an ISA, so it cancels out of the comparison.
You only sacrificed £104. Even after the lock-in penalty, you are -£25 better off every single month.
What you leave on the table by saying no
Per month
£89
Per year
£1,063
That is employer match and tax relief you simply do not get if you opt out. It is not deferred. It is gone.
The older you are, the less the lock-up costs you
The dashed line is the raw free money. The solid line shows what it is worth after discounting for the years you cannot access it. The gap narrows as you approach pension age.
Dashed: nominal free money. Solid: after discounting for years locked away. Gap = what the lock-up costs you.
Political risk is real
UK governments have repeatedly changed pension rules: the access age rose from 55 to 57, the lifetime allowance was scrapped and partially reinstated, and tax relief rules shift regularly. If you want to be conservative, raise the discount rate to price that uncertainty in. Even at a punitive discount, employer matching is almost always worth taking.
The bottom line
Yes, 36 years is a long time to wait. But for every £1 you put in, £0.76 ends up in your pension in today's money. Your employer and HMRC are handing you £89 per month of free money that vanishes the moment you opt out. Over a year, that is £1,063 you will never get back. Even the most aggressive discount rate cannot wipe out a return that generous. Take the match.
Important: Not Financial Advice
This calculator is provided for educational and illustrative purposes only. Freedom Isn't Free is not authorised or regulated by the Financial Conduct Authority (FCA) and does not provide financial advice, investment recommendations, or tax guidance.
The projections shown are hypothetical, assume a constant rate of return, and do not account for inflation, taxes, or fees. Actual investment returns vary and you may get back less than you invest. Past performance is not a reliable indicator of future results.
Before making any financial decisions, please consult with an independent financial adviser regulated by the FCA. For help finding an adviser, visit MoneyHelper or Unbiased.
Where links to financial products appear on this page, some may be affiliate links. See our full disclaimer for details.
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