Useful next calculations
Rates and sources, 2026/27
Pension annual allowance, tapered for high earners. The Lifetime Allowance is abolished — no lifetime limit applies.
| Band or figure | Rate |
|---|---|
| Annual allowance | £60,000 |
| Tapered for income over | £260,000 |
| Minimum tapered allowance | £10,000 |
| Carry-forward | 3 prior tax years |
Source: HMRC — Pension schemes. Source checked for 2026/27.
When to use this calculator
- Before choosing between saving, investing or changing a contribution.
- When you want to compare cautious, base and optimistic return assumptions.
- When you need a projection before making a longer-term decision.
- When you want to see whether starting earlier or contributing more changes the outcome more.
A worked example
These are the example figures the calculator opens with.
| Input | Value |
|---|---|
| Your Annual Contribution (£) | £8,000 |
| Your Tax Rate (%) | 20% |
| Years Until Retirement | 20 |
| Annual Return (%) | 7% |
For those figures the calculator returns:
- Gross contribution: £10,000.00/yr
- Projected pot: £438,651.77
- Your cost: £160,000.00
Method & assumptions
This calculator projects the growth of a SIPP over time and may also estimate a potential retirement income. Contributions entered should be net of basic rate tax relief — for example, enter £800 if you actually pay in £800, and the calculator assumes the government adds the 20% top-up to reach £1,000 gross. Higher rate and additional rate taxpayers should also claim their extra relief via self-assessment.
The calculator assumes a fixed annual investment return net of fund and platform charges and does not model annual allowance tapering for very high earners or the money purchase annual allowance triggered by flexi-access drawdown. The 25% tax-free lump sum entitlement is shown illustratively and is subject to the current lump sum and death benefit allowance. This tool is for planning purposes only and does not constitute financial advice — consider consulting a regulated financial adviser before making SIPP decisions.
Common mistakes
- Assuming a constant return without checking a more conservative growth rate.
- Forgetting ongoing contributions, fees or tax wrappers where relevant.
- Focusing only on the final balance instead of the path required to reach it.
- Ignoring the drag of charges over a long period.
What to do next
- Test a cautious, expected and optimistic growth rate.
- Compare this result with related savings or retirement tools before committing more money.
- Consider charges and any tax wrapper that applies.
- If the projected balance falls short, increase the contribution until the result meets your goal.
Guides that use this calculator
- UK Tax Year 2025/26: Complete Guide to Allowances, Bands & ThresholdsFull reference for the 2025/26 UK tax year — income tax bands, Personal Allowance, National Insurance, ISA allowance, pension limits, stamp duty changes.
- UK Pension Allowances 2026/27: Annual Allowance, Taper, Carry-ForwardUK pension contribution limits — £60k annual allowance, tapering for high earners, carry-forward rules, and what changed when the Lifetime Allowance was abolished.
- UK Tax Year 2026/27: Confirmed Rates, Upcoming Changes, Planning ChecklistWhat’s confirmed for the 2026/27 UK tax year, what’s changing (MTD for Self Assessment, IHT on pensions), and the allowances to lock in before 5 April 2027.
- UK Salary Sacrifice Guide: Pension, EV & Cycle-to-Work SavingsHow UK salary sacrifice works — NI and tax savings on pension contributions, EV lease schemes, cycle-to-work, and the pitfalls around mortgage applications and statutory pay.