Pension Calculator 2026/27

Pension Growth Calculator

✓ Verified for 2026/27

Pension Details

years
years
£
£
£
%
Projected Pot
£0
at retirement
Tax-Free Lump Sum
£0
25% allowance
Total Contributions
£0
you & employer
Investment Growth
£0
compounded interest

Pension Pot Breakdown

Projected Pot £0
Tax-Free Lump Sum (25%) £0
Remaining Taxable Pot £0
Your Contributions £0
Employer Contributions £0
Total Investment Growth £0

Pot Growth over Time

ℹ️ UK tax rules allow you to take up to 25% of your total pension fund tax-free once you reach age 55 (rising to 57 in 2028), capped at a lifetime limit of £268,275. The remaining 75% is taxable as ordinary income when withdrawn.
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Verified for Accuracy (2026/27 Tax Year)
Fact-checked and audited by David Vance, CTA FCA, Chartered Tax Advisor & Accountant. Verified against official HMRC rules.

How We Calculated This

  1. Enter Pension Sacrifice details: Specify salary sacrifice contribution percentage or flat rate.
  2. Calculate pre-tax deduction: Reduce the gross taxable salary by the contribution amount.
  3. Compute new lower taxes: Recalculate Income Tax and employee National Insurance on the lower taxable figure.
  4. Determine Savings: Compare the net pay before and after the contribution to find the true net cost and tax/NI savings.

Real-World Examples

Example 1: 5% Salary Sacrifice on £40,000 Salary

Shows how the tax/NI savings reduce the true cost of saving for retirement.

Gross salary: £40,000
Pension contribution (5%): £2,000
New taxable salary: £38,000

Income Tax savings (20% of £2,000): £400
National Insurance savings (8% of £2,000): £160
Total Tax + NI saved: £560

Net cost to employee: £2,000 - £560 = £1,440

Related Calculators

Inheritance Tax CalculatorISA & Savings CalculatorPension Carry Forward CalculatorIncome Tax Calculator

Frequently Asked Questions

What is the pension annual allowance for 2026/27 and how does tapering work?

The standard pension annual allowance is £60,000. This is the maximum amount you can contribute to all your registered pension schemes in a single tax year while receiving tax relief (subject to the contribution not exceeding 100% of your relevant UK earnings). For high earners, this allowance is subject to ‘tapering’. If your ‘adjusted income’ exceeds £260,000 and your ‘threshold income’ exceeds £200,000, your annual allowance is tapered down by £1 for every £2 of income above £260,000, down to a minimum tapered allowance of £10,000 per year. You can utilize ‘carry forward’ rules to access unused allowances from the previous three tax years, provided you were a member of a registered pension scheme in those years.

What is the difference between Net Pay and Relief at Source pension tax relief?

HMRC provides tax relief on your pension contributions based on your marginal tax rate, but the method depends on your employer’s scheme:

  • Net Pay Arrangement: Pension contributions are deducted from your gross pay before income tax is calculated. You automatically receive full tax relief at your highest marginal rate (20%, 40%, or 45%) without needing to claim anything.
  • Relief at Source: Contributions are deducted from your net, post-tax pay. The pension provider automatically claims basic rate tax relief (20%) from HMRC and adds it to your pot. If you are a higher-rate (40%) or additional-rate (45%) taxpayer, you must claim the extra 20% or 25% tax relief manually via your Self Assessment tax return or by contacting HMRC to adjust your tax code.