Retirement Calculator
Plan your retirement with calculations for pension savings and withdrawal strategies
Retirement Planning
£
£
£
%
%
£
%
%
Retirement Analysis
Enter your retirement details
See your retirement plan analysis
Withdrawal Strategies
Common Retirement Withdrawal Rules
4%
4% Rule
Most commonly recommended safe withdrawal rate
3.5%
Conservative
Lower risk, longer lasting retirement funds
5%
Aggressive
Higher income but increased risk of running out
Variable
Dynamic
Adjust based on market performance and needs
Retirement Planning Guide
Key Retirement Principles
- Start Early: Time is your most powerful ally in retirement planning
- Consistent Contributions: Regular monthly savings compound effectively
- Diversify Investments: Spread risk across different asset classes
- Consider Inflation: Plan for rising costs over time
- Review Regularly: Adjust your plan as circumstances change
Retirement Income Sources
- State Pension: Government provided basic pension
- Workplace Pension: Employer-sponsored retirement schemes
- Personal Pensions: Self-invested personal pensions (SIPPs)
- ISAs: Tax-free savings and investment accounts
- Property: Rental income or downsizing equity
- Other Investments: Stocks, bonds, and other assets
Tax Considerations
- Pension Tax Relief: Get tax relief on contributions
- Annual Allowance: Maximum tax-relieved contributions per year
- Lifetime Allowance: Total pension pot limit for tax benefits
- Withdrawal Tax: 25% tax-free, remainder taxed as income
Retirement Planning Timeline
- 20s-30s: Start saving, maximize employer matching
- 40s: Increase contributions, review investment strategy
- 50s: Catch-up contributions, consider risk reduction
- 60s: Pre-retirement planning, optimize withdrawal strategy
- Retirement: Implement withdrawal plan, monitor regularly
Common Retirement Mistakes
- Starting Too Late: Missing years of compound growth
- Underestimating Needs: Not saving enough for desired lifestyle
- Ignoring Inflation: Not accounting for rising costs
- Too Conservative: Missing growth opportunities
- No Emergency Fund: Having to dip into retirement savings
- Neglecting Healthcare: Underestimating medical costs
Withdrawal Strategies
- 4% Rule: Withdraw 4% of initial balance annually
- Fixed Amount: Same pound amount each year
- Fixed Percentage: Same percentage of current balance
- Floor and Ceiling: Minimum and maximum withdrawal limits
- Dynamic: Adjust based on market performance
Important Note About Inflation
All calculations show nominal values. Remember that inflation reduces purchasing power over time. £40,000 today may only have the purchasing power of £20,000 in 30 years with 2.5% inflation. Consider this when planning your retirement income needs.