Self-Drive pension calculator

What you'll pay in

We assume you’ll keep making the same monthly payments until you start to enjoy the benefits of your pension.

Tax relief on your payments

We assume that basic rate tax relief will be added to your pension for all regular and one-off payments you make up to the age of 75. If you have told us that you want to make payments after age 75 then we haven’t added tax relief to those.

We assume the rate of tax relief will stay at the same level as it is today.

You may be able to claim more tax relief but it won’t be automatically added to your pension.

To keep things simple, we don’t limit the payments you’ll make (or tax relief you’ll receive) for HMRC Annual Allowance limits. But it’s really important you know that limits might apply and these could change in the future. To check details go to gov.uk Link opens in a new window.

Imagining the future

We consider past performance when estimating possible outcomes for your pension based on how much you invest, for how long and how the market might perform. However, past performance isn’t a reliable guide to future performance - investments can go up or down.

To work out this estimate we do lots of calculations behind the scenes. To keep it reasonable, we ignore both the highest and lowest 5% of results when we show you the estimated value rangeWhat your pension pot could be worth.

Considering inflation

We show what your pension pot and annual income might be worth in today's money, after allowing for inflation. We consider lots of possibilities for inflation, rather than a single fixed % because the rate of inflation can rise and fall over time. Inflation reduces the value of what you can buy in the future as well as the value of your savings.

Deducting our charges

We have two charges, totalling up to 0.75% each year: an Account Charge (for managing your account) of 0.30% and an Annual Management Charge (for managing your investments) of 0.40% or 0.45%, depending on the fund(s) your pension invests in. Your estimate includes the relevant charges for your pension fund choice, and we’ve assumed they’ll stay the same for the time you’re investing with us.

When you access your pension benefits

At the moment, you can choose to take pension benefits from age 55. From April 2028 this will rise to 57.

Your estimated annual income assumes that after taking 25% tax-free cash, you use the rest of your pension pot to buy a guaranteed income for life (also called an annuity) which will provide you with a steady income for the rest of your life (or will pay out for five years if less). There's no income payable to your spouse or civil partner if you die (except in the first five years).

Although the estimate uses a guaranteed income for life, you should be aware that other options are available when accessing income from your pension. If you are unsure about the type of income to take from your pension you should consider taking financial advice.

We assume that your income remains at the same, fixed level for the rest of your life – that means it'd buy less over time if prices rise.

We show you the income before tax, but you should bear in mind that any income would be potentially subject to income tax.

Rounding things off

Finally, we round our estimates down a bit, just to make the numbers a bit easier to read — remember they’re only a guide.

So that’s how we work out your estimate.