Pension Calculator
Calculate your retirement pension income based on your age, contributions, investment returns, and retirement age. Plan your financial future with our comprehensive calculator.
Step 1: Personal Information
Pension Formula
Future Value = Current Savings × (1 + Annual Return)^Years + Monthly Contribution × [(1 + Monthly Return)^Months – 1] / Monthly Return
Step 2: Investment & Assumptions
Typical Pension Values
Comfortable retirement: £25,000-£30,000/year
Moderate retirement: £18,000-£22,000/year
Basic retirement: £12,000-£15,000/year
Pension Calculation Results
Estimated Annual Pension Income
Pension Type Comparison
| Pension Type | Typical Return | Total Fund | Annual Income |
|---|
Pension Calculation Formula
Future Value = Current Savings × (1 + r)^n + PMT × [(1 + r)^n – 1] / r
Where:
• Current Savings = Current pension pot value
• r = Monthly return rate (Annual Return / 12)
• n = Number of months until retirement
• PMT = Monthly contribution amount
Annual Pension Income = Total Fund × Withdrawal Rate (typically 4-5%)
Real Value Adjustment = Nominal Value / (1 + Inflation Rate)^Years
Example Calculation
Example: 35-year-old planning to retire at 65
Current Savings: £25,000
Monthly Contribution: £300
Annual Return: 6%
Years to Retirement: 30
Calculation:
Future Value of Current Savings: £25,000 × (1.06)^30 = £143,587
Future Value of Contributions: £300 × [(1.005)^360 – 1] / 0.005 = £225,313
Total Fund: £368,900
Annual Income (4.5% withdrawal): £368,900 × 0.045 = £16,600
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