Pension Calculator
Work out how much tax relief you'll get on pension contributions and project your pension pot growth over time. Updated for 2024/25 with the £60,000 annual allowance.
Minimum auto-enrolment: 3% employer, 5% total
Enter details to calculate pension
Understanding Pension Tax Relief
Pension contributions are one of the most tax-efficient ways to save for retirement. The government adds tax relief to your contributions, effectively giving you back the tax you would have paid on that income.
Tax Relief by Tax Band (2024/25)
| Tax Band | Your Cost | In Your Pension | Effective Boost |
|---|---|---|---|
| Basic Rate (20%) | £80 | £100 | 25% boost |
| Higher Rate (40%) | £60 | £100 | 67% boost |
| Additional Rate (45%) | £55 | £100 | 82% boost |
Key Pension Rules for 2024/25
- Annual Allowance: £60,000 (can carry forward unused allowance from 3 previous years)
- Lifetime Allowance: Abolished from April 2024
- Minimum Pension Age: 55 (rising to 57 from 2028)
- Tax-Free Lump Sum: 25% of your pension pot (up to £268,275)
Calculation Methodology
This calculator uses official HMRC PAYE algorithms for 2026/27. Rates sourced directly from gov.uk. Reviewed by a qualified ICAEW-regulated accountant.
Official Sources
Important: Results are estimates based on standard HMRC rules. Your actual tax may differ based on your specific tax code, benefits, or HMRC adjustments. Always verify with your employer or a qualified accountant.
Frequently Asked Questions
How does pension tax relief work?
When you contribute to a pension, the government adds tax relief. Basic rate taxpayers get 20% added automatically. Higher (40%) and additional (45%) rate taxpayers can claim extra relief through Self Assessment.
What is the pension annual allowance?
The standard annual allowance is £60,000 for 2024/25. This is the maximum you can contribute to pensions in a tax year while still receiving tax relief. Unused allowance can be carried forward for up to 3 years.
What is auto-enrolment?
Auto-enrolment requires employers to automatically enrol eligible employees into a workplace pension. Minimum contributions are 8% total (3% employer, 5% employee including tax relief).
Can I access my pension before retirement?
Generally, you can access your pension from age 55 (rising to 57 from 2028). You can usually take 25% tax-free, with the rest taxed as income. Early access before this age is not normally possible.
Should I contribute more to my pension or pay off debt?
This depends on interest rates and your tax band. High-interest debt (like credit cards) should usually be prioritised. However, pension contributions offer tax relief and potentially employer matching, which can make them very attractive.