Example result based on the prefilled values.
Result
75,762.66
Continue your plan
Useful next calculations
When to use this calculator
- Before choosing between saving, investing, or increasing your monthly contribution.
- When you want to compare best-case, base-case, and cautious return assumptions.
- When you need a quick projection before making a longer-term portfolio decision.
- When you are deciding how many more years of contributions are needed to reach a specific target balance.
- When you want to see whether starting earlier versus contributing more each month produces a bigger outcome.
A realistic New Zealand planning example
Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.
Regular Payment (£)
500
Annual Interest Rate (%)
5%
Years
10 years
Type (0=Ordinary, 1=Due)
0
After entering these figures, focus on result first and then rerun the tool with a more cautious assumption to understand the realistic range of outcomes rather than relying on a single estimate.
How to read your results
Result
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Method & assumptionsAuthoritative sources
This calculator estimates the annual or monthly income an annuity might generate from a given pension pot, based on a hypothetical annuity rate you enter. Annuity rates are expressed as the annual income paid per £100,000 of pension fund and vary by provider, age, and product type. Because rates change frequently with gilt yields and market conditions, this tool uses a rate you supply rather than a live rate.
The calculator does not model enhanced annuities available to those with health conditions, which can pay significantly more. It also does not account for the tax-free cash you may choose to take before purchasing the annuity, which would reduce the pot size. The 25% pension commencement lump sum is tax-free under current UK rules, subject to the lump sum and death benefit allowance. Always obtain quotes from multiple providers before purchasing.
Common mistakes
- !Using an assumption that is not supported by a current local quote, bill, statement or official source.
- !Treating a generic estimate as a lender, provider, payroll or tax authority decision.
- !Mixing monthly and annual inputs without converting them consistently.
- !Forgetting location-specific taxes, fees, eligibility rules or payroll deductions where they apply.
- !Testing only one scenario instead of checking how a cautious assumption changes the result.
What to do next
- Run a second scenario with a cautious assumption so you can see the downside clearly.
- Compare the result with the related calculators below before making a decision.
- Check current local rules, eligibility and provider terms before applying or committing money.
- Keep a record of the assumptions so you can update the estimate when a quote, bill or pay figure changes.
- Use the result to prepare better questions for a lender, provider, adviser or employer rather than treating it as a final answer.
Frequently asked
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