Pension Calculator

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Pension Pot & Retirement Income Calculator

Retirement Projection

At age , your estimated pension pot will be:

*Adjusted for inflation (purchasing power in today's money):

Estimated Annual Retirement Income (based on 4% rule):

per year

This equates to approximately per month.

function calculatePension() { var currentAge = parseFloat(document.getElementById('currentAge').value); var retirementAge = parseFloat(document.getElementById('retirementAge').value); var currentPot = parseFloat(document.getElementById('currentPot').value); var monthlyContribution = parseFloat(document.getElementById('monthlyContribution').value); var growthRate = parseFloat(document.getElementById('growthRate').value) / 100; var inflationRate = parseFloat(document.getElementById('inflationRate').value) / 100; if (isNaN(currentAge) || isNaN(retirementAge) || isNaN(currentPot) || isNaN(monthlyContribution) || isNaN(growthRate) || isNaN(inflationRate)) { alert("Please enter valid numbers in all fields."); return; } if (retirementAge 0) { fvContributions = monthlyContribution * (Math.pow(1 + monthlyGrowthRate, monthsToInvest) – 1) / monthlyGrowthRate; } else { fvContributions = monthlyContribution * monthsToInvest; } var totalPot = fvCurrentPot + fvContributions; // Adjust for Inflation (Real value in today's terms) var inflationAdjusted = totalPot / Math.pow((1 + inflationRate), yearsToInvest); // Estimated Income (4% Safe Withdrawal Rate rule) var annualRetirementIncome = inflationAdjusted * 0.04; var monthlyRetirementIncome = annualRetirementIncome / 12; // Display results document.getElementById('resRetirementAge').innerText = retirementAge; document.getElementById('totalPotValue').innerText = formatCurrency(totalPot); document.getElementById('inflationAdjustedPot').innerText = formatCurrency(inflationAdjusted); document.getElementById('annualIncome').innerText = formatCurrency(annualRetirementIncome); document.getElementById('monthlyIncome').innerText = formatCurrency(monthlyRetirementIncome); document.getElementById('pensionResult').style.display = 'block'; } function formatCurrency(num) { return num.toLocaleString(undefined, { minimumFractionDigits: 0, maximumFractionDigits: 0 }); }

How to Use the Pension Calculator for Retirement Planning

Planning for retirement is one of the most critical financial tasks you will undertake. A pension calculator helps you estimate the size of your retirement nest egg and the potential income you can expect based on your current contributions and investment growth. By understanding these projections early, you can make informed decisions about increasing your contributions or adjusting your retirement timeline.

Understanding the Key Inputs

  • Current Age vs. Retirement Age: This determines the "time horizon" for your investments. The longer the duration, the more power compound interest has to grow your wealth.
  • Current Pension Balance: Your starting point. Even small initial amounts can grow significantly over 20 or 30 years.
  • Monthly Contribution: This includes your personal contributions, employer matches, and any government tax relief applied to your pension.
  • Expected Annual Growth: The average annual return you expect from your pension investments (e.g., stocks, bonds, or target-date funds). Stock markets historically return around 5% to 7% after inflation, but conservative estimates are often safer.
  • Inflation Rate: This is crucial. Over 30 years, the price of goods will rise. Our calculator provides an "inflation-adjusted" figure to show you what your pot would be worth in today's purchasing power.

The Importance of the "4% Rule"

In our results, we estimate your annual income using the "4% Rule." This is a common financial guideline suggesting that if you withdraw 4% of your total retirement pot in the first year and adjust for inflation thereafter, your money has a high probability of lasting 30 years. It provides a realistic benchmark for how much income a specific pot size can actually generate.

Practical Example

Imagine a 35-year-old individual who currently has 15,000 in their pension. They decide to contribute 400 every month and expect a 5% annual growth rate. By retiring at age 67 (32 years of growth):

  1. The total nominal pot size would grow to approximately 445,000.
  2. Adjusted for 2.5% inflation, this represents about 201,000 in today's buying power.
  3. Based on the 4% rule, this would provide a monthly retirement income of roughly 670 (in today's money) on top of any state-provided pensions.

Why Inflation Matters in Pension Projections

A million-dollar pension pot sounds like a fortune, but if you are 30 years away from retirement, that million will buy significantly less than it does today. That is why our calculator emphasizes the inflation-adjusted value. This ensures you are not misled by large future numbers and can plan for a lifestyle that meets your expectations.

Note: This calculator is for educational purposes only. It assumes a constant rate of growth and inflation, which does not happen in real-world markets. Pension values can go down as well as up. Always consult with a certified financial advisor before making significant changes to your retirement strategy.

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