Free UK Pension Calculator 2025/26

The full new State Pension for 2025/26 is £230.25 per week, which equals £11,973 per year. However, you need 35 qualifying years of National Insurance contributions to receive the full amount. If you have between 10 and 34 qualifying years, you'll receive a proportional amount (approximately £342 per year for each qualifying year).

You can check your State Pension forecast and NI record for free at gov.uk/check-state-pension. LOYALS accountants can help you understand your forecast and identify opportunities to fill any gaps in your NI record through voluntary contributions.

According to the Retirement Living Standards, a single person needs approximately £14,400/year for a minimum lifestyle, £31,300/year for moderate, and £43,100/year for comfortable retirement. Using the sustainable 4% withdrawal rule, you would need:

Minimum: £360,000 pension pot + State Pension
Moderate: £782,500 pension pot + State Pension
Comfortable: £1,077,500 pension pot + State Pension

These figures assume you also receive the full State Pension (£11,973/year). Remember, the earlier you start contributing and the more you invest, the easier it is to reach these targets through compound growth. LOYALS can model your specific situation and create a personalized pension plan.

The 4% rule is a widely-used guideline that suggests you can safely withdraw 4% of your pension pot each year in retirement without running out of money. For example, a £500,000 pension pot would provide approximately £20,000 per year (plus your State Pension).

This rule is based on historical investment returns and assumes your pension remains invested during retirement, generating growth that offsets your withdrawals. However, your actual safe withdrawal rate depends on factors like your investment strategy, retirement age, life expectancy, and desired legacy. LOYALS works with specialist pension advisors to create sustainable withdrawal strategies tailored to your circumstances.

Absolutely! Even if you're 5-10 years from retirement, increasing your pension contributions can significantly boost your pot through compound growth and tax relief. For every £100 you contribute, the government adds £25 in basic rate tax relief (higher rate taxpayers can claim an additional 25% via Self Assessment).

Example: If you're 55 with £100,000 in your pension and increase monthly contributions by £500, with 5% growth you could have an additional £70,000+ by age 65. Many people in their 50s also benefit from "carry forward" rules, allowing them to use unused annual allowances from the previous three tax years to make large catch-up contributions. LOYALS can help optimize your final working years for maximum pension growth.

Consolidating multiple pension pots can often be beneficial, making it easier to manage your retirement savings, reducing fees, and providing a clearer picture of your total pension wealth. Many people accumulate 5-10+ pension pots from different employers over their career, each with different fees, investment strategies, and performance.

However, consolidation isn't always the right choice. Some older pensions have valuable guarantees (like guaranteed annuity rates), protected tax-free lump sums, or death benefits that you'd lose by transferring. Before consolidating, you should review: annual charges and exit fees, investment performance, guaranteed benefits, death benefit provisions, and whether your current pots meet your retirement goals. LOYALS provides comprehensive pension reviews to identify which pots to keep separate and which to consolidate for optimal outcomes.

Self-employed individuals receive pension tax relief differently than employees. When you contribute to a personal pension (SIPP), the pension provider automatically claims basic rate tax relief (20%) from HMRC and adds it to your pension. So if you contribute £800, your pension receives £1,000 (the £800 you paid plus £200 tax relief).

If you're a higher rate (40%) or additional rate (45%) taxpayer, you can claim the extra relief through your Self Assessment tax return, effectively reducing your tax bill by an additional 20-25%. For example, on a £10,000 gross contribution, a higher rate taxpayer gets £2,000 added automatically plus can reduce their tax bill by another £2,000. LOYALS monthly accounting clients receive proactive pension planning to maximize these tax benefits throughout the year, not just at tax return time.

Your pension doesn't disappear if you die before retirement. Modern pensions (defined contribution) can typically be passed to your beneficiaries tax-free if you die before age 75. Your beneficiaries can take the money as a lump sum or keep it invested and draw income.

If you die after age 75, your beneficiaries can still inherit your pension, but they'll pay income tax on withdrawals at their marginal rate. This makes pensions extremely tax-efficient for inheritance planning compared to other assets. It's crucial to keep your pension's "expression of wish" form updated with your desired beneficiaries, as this guides (but doesn't legally bind) the pension trustees. LOYALS can help ensure your pension is structured optimally for your family's protection and tax efficiency.

Yes! Your State Pension age and your private pension access age are different. You can access your private/workplace pension from age 55 (rising to 57 from 2028), which could be 10+ years before you receive State Pension. When you access your pension, you can typically take 25% as a tax-free lump sum, with the remainder available for drawdown or annuity purchase.

However, accessing your pension early means it needs to last longer in retirement. Taking too much too soon can lead to running out of money later in life or pushing you into higher tax brackets. There's also the "Money Purchase Annual Allowance" (MPAA) - if you start flexibly accessing your pension, your future annual contribution limit drops from £60,000 to just £10,000. LOYALS helps clients model different retirement scenarios to find the optimal balance between early access and long-term security.

The annual allowance for pension contributions in 2025/26 is £60,000 or 100% of your earnings (whichever is lower). This includes contributions from you, your employer, and tax relief. If you earn less than £60,000, your limit is your earnings. For example, if you earn £40,000, you can contribute up to £40,000.

You can also use "carry forward" to make larger contributions if you have unused allowances from the previous three tax years (and were a member of a pension scheme in those years). Be aware: if your "threshold income" exceeds £200,000 and "adjusted income" exceeds £260,000, your annual allowance starts reducing (tapered annual allowance). LOYALS accountants help high earners navigate these complex rules to maximize contributions without triggering tax charges.

LOYALS offers a comprehensive Financial Review & Tailored Pension Plan for £800 as a one-time fee. This includes your free initial consultation (no obligation), full review of all existing pensions and investments, risk assessment, comprehensive financial plan tailored to your goals, detailed personal report with clear recommendations, contact with current providers on your behalf, and complete implementation support.

Your first meeting is completely free with no obligation to proceed. We'll discuss your situation, understand your goals, and only if you decide to proceed with our recommendations will the £800 fee apply. We also offer optional ongoing advice services for those who want regular reviews as circumstances change — we can discuss those costs when we meet.

This depends on your mortgage interest rate, tax position, and retirement goals. Generally, if you're receiving employer pension matching, you should contribute enough to get the full match first (it's free money). After that, compare your mortgage interest rate to your expected pension growth rate.

Example: If your mortgage rate is 2% and you're a higher rate taxpayer (40%), pension contributions are very attractive because you receive 40% tax relief immediately, essentially a 40% "return" before any investment growth. However, if your mortgage rate is 5%+ and you're a basic rate taxpayer, overpaying the mortgage might provide better guaranteed "returns." Most people benefit from a balanced approach: maintain employer pension matching, make some pension contributions for tax relief, and also reduce mortgage debt. LOYALS creates personalized financial models showing the long-term impact of each strategy based on your specific circumstances.