Finance Calc App

Workplace pension calculator

See how your workplace pension could grow with employer contributions and tax relief. Auto-enrolment is 5% from you and 3% from your employer.

By Mitch Duncan Last reviewed Methodology

Your workplace pension details

Auto-enrolment minimums are 5% from you and 3% from your employer (8% total) on qualifying earnings. Contributions get tax relief, and many employers will match extra if you pay more. The annual allowance is £60,000.

Projected balance at retirement (in 30 years)
£523,066.57
Your contribution / year
£3,000.00
Employer contribution / year
£1,800.00
How the projection breaks down
Combined contributions / year
£4,800.00
Total paid in over 30 years
£169,000.00
Investment growth
£354,066.57

Assumes a constant salary, contribution rate, and 6.0% average annual return. Real returns vary; figures are before inflation and fees.

Want the full picture? How to Plan for Retirement →

How a UK workplace pension works

Under auto-enrolment, most UK employees are automatically placed into a workplace pension. The minimum total contribution is 8% of qualifying earnings — at least 3% from your employer and the rest (typically 5%) from you, including tax relief.

Tax relief boosts every contribution

Pension contributions get tax relief at your marginal rate. A basic-rate taxpayer's £100 contribution effectively costs £80; a higher-rate taxpayer can reclaim more through their tax return. This relief, combined with the employer's contribution, means money paid into a pension goes much further than the same amount taken as salary.

Pay more if your employer will match it

Many employers offer to match contributions above the auto-enrolment minimum — for example, matching up to 6% or more. If yours does, increasing your contribution to capture the full match is one of the best-value decisions available. The annual allowance is £60,000 (tapered for very high earners).

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Frequently asked questions

What is an employer match and why does it matter?
An employer match is money your employer adds to your pension or retirement account based on what you contribute — often 50% to 100% of your contributions up to a set percentage of your salary. It's effectively part of your pay, and an instant, guaranteed return that no investment can reliably beat. Contributing at least enough to capture the full match is the single most valuable thing most people can do for their retirement.
How much of my salary should I put into my pension?
A common guideline is 10–15% of gross pay including any employer contribution, but the right number depends on your age, when you started, and your target retirement income. The minimum first step is to contribute enough to get the full employer match. After that, increasing your rate by even 1–2% a year — for example when you get a pay rise — makes a large difference over a career thanks to compounding.
Why does starting early matter so much?
Because returns compound, money invested early does far more work than the same amount invested later. A contribution made 30 years before retirement can grow several times over, while the same contribution made 10 years out grows much less. This is why financial planners stress getting started — even with small amounts — rather than waiting until you can afford to contribute more.
How is the projected balance calculated?
The calculator compounds your current balance plus your combined annual contributions (yours plus your employer's) at your assumed annual return until retirement. The formula is: final balance = current balance × (1+r)^n + annual contribution × ((1+r)^n − 1) / r, where r is the annual return and n is the number of years.
What return rate should I assume?
Long-run real (after-inflation) returns have historically been around 5–7% for stock-heavy portfolios, lower for more conservative mixes. Past performance isn't a guarantee. Many people project with 5–7% nominal and also run a more pessimistic case to stress-test the plan. Remember the projection is before fees and inflation, so the real purchasing power of the final figure will be lower.
What happens to my pension if I change jobs?
Your own contributions are always yours. Employer contributions may be subject to a vesting period, so check whether you'd forfeit any unvested amount by leaving early. When you move jobs, it's usually best to transfer or consolidate the balance rather than cash it out — cashing out early often triggers tax and penalties and loses years of compound growth.

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