Question 1

How is my pension pot projected?

Accepted Answer

Your current pot and future contributions are grown each year at your chosen rate, with annual charges deducted. Results are shown in today's money, so they already allow for inflation and can be compared directly with what you spend now.

Question 2

Which growth rates does the calculator use?

Accepted Answer

You can choose the AS TM1 rates set by the Financial Reporting Council, which are the standard behind annual pension statements and the Pensions Dashboards and range from 1% to 7% depending on how volatile your fund is. You can also use the FCA Key Features Illustration rates of 2%, 5% and 8%, set your own assumptions, or run a Monte Carlo simulation that varies returns each year.

Question 3

Why does the Monte Carlo model give a different answer?

Accepted Answer

A single fixed growth rate hides sequence-of-returns risk: two portfolios with the same average return can end very differently depending on when the bad years fall. The Monte Carlo model runs hundreds of random return sequences and reports the range of outcomes plus the probability your pot lasts.

Question 4

How much state pension will I get?

Accepted Answer

The full new State Pension is £241.30 a week in 2026/27, which needs 35 qualifying National Insurance years. Ten years is the minimum for any payment, and anything between is pro-rated. Check your own record with the state pension forecast on GOV.UK.

Question 5

How is pension drawdown income taxed?

Accepted Answer

A quarter of what you take is normally tax-free, up to a Lump Sum Allowance of £268,275, and the rest is taxed as income. The calculator applies the 2026/27 personal allowance and the 20%, 40% and 45% bands for England, Wales and Northern Ireland, and counts the state pension towards your taxable income.

Question 6

What is a FIRE number and how does early retirement work in the UK?

Accepted Answer

Your FIRE number is the pot needed to sustain your spending at your chosen withdrawal rate, commonly 25 times annual spending at a 4% rate. In the UK you cannot touch a private pension until age 57 from April 2028, so retiring earlier needs a bridge pot such as ISAs to cover the years in between. The calculator models those bridge years separately and flags any shortfall.

Question 7

Is my data stored or sent anywhere?

Accepted Answer

No. Every calculation runs in your browser, and your figures are saved only in your own browser's local storage so the form is still filled in when you return. Nothing is uploaded or shared.

Question 8

Is this financial advice?

Accepted Answer

No. This is a guidance tool using simplified assumptions, and its projections are not a promise of what you will receive. Investment returns are not guaranteed and tax rules change. For advice on your own circumstances speak to a regulated financial adviser; free impartial guidance is available from MoneyHelper and Pension Wise.

UK Pension Planner