Planning retirement can feel complicated, but a clear pension projection helps you make better decisions now. This legal & general pension calculator gives you a practical estimate of how your pension pot could grow based on age, contributions, growth assumptions, fees, and inflation. It also shows what that pot might mean for retirement income, both with a drawdown-style monthly income estimate and a safe withdrawal guide.
How this legal & general pension calculator works
The tool combines two parts of pension growth:
- Your existing pension pot, growing over time through investment returns (after fees).
- Future monthly contributions, including both personal and employer contributions.
At retirement, the calculator estimates:
- Total projected pot at retirement (nominal value)
- Projected pot in today’s money (inflation-adjusted)
- Potential tax-free cash amount
- Estimated retirement income from the remaining pot
Why assumptions matter
No pension projection can predict markets exactly. Your outcomes can be very different depending on long-term growth, fees, inflation, and how you draw income in retirement. The calculator lets you test multiple scenarios, which is usually more useful than relying on one single number.
1) Investment growth
Higher long-term growth can significantly increase your final pot, but growth is not guaranteed and investment values can fall as well as rise. A realistic range for broad planning is often better than an optimistic single guess.
2) Pension charges
Fees may look small, but over decades they can reduce compounding. Testing a low-fee and higher-fee scenario helps you understand the long-term impact.
3) Inflation
Inflation reduces purchasing power. A pension pot that appears large in future pounds may buy less than expected. That’s why the inflation-adjusted view is essential when comparing retirement plans.
How to use this calculator effectively
Step 1: Enter your real current situation
- Use your latest pension statement for your current pot.
- Include only regular monthly contributions you can realistically sustain.
- Add your employer contribution to get the full monthly amount invested.
Step 2: Run at least three scenarios
- Conservative: lower growth, slightly higher inflation
- Expected: your best realistic middle estimate
- Optimistic: higher growth and stable inflation
Comparing scenarios gives a more robust retirement plan than relying on a best-case projection.
Step 3: Test contribution changes
Even modest increases can have a strong long-term effect. Try adding an extra £50 to £150 per month and compare outcomes. Because of compounding, early increases generally matter more than late increases.
Interpreting the results
When you click calculate, focus on these outputs:
- Projected pension pot at retirement: the headline number in future pounds.
- Inflation-adjusted value: a better indicator of future spending power.
- Tax-free cash: estimated using your chosen percentage (up to 25% in this calculator).
- Estimated monthly drawdown income: a modelled monthly income over your selected retirement years.
- Safe withdrawal estimate: a simple annual/monthly guide based on your chosen withdrawal rate.
Ways to improve your pension outcome
Increase contributions with each pay rise
Raising contributions whenever salary increases can be a low-friction way to build wealth without a major lifestyle shock.
Check employer matching rules
In many workplace pensions, failing to contribute enough to receive full employer match means leaving money on the table.
Review fees and fund choices periodically
A low-cost, diversified setup is often an effective baseline for long-term accumulation, though personal suitability varies.
Keep an eye on retirement age flexibility
Working even 1–3 years longer can have a double benefit: more time for contributions and less time drawing income.
Common pension planning mistakes
- Assuming today’s spending needs will stay the same in retirement
- Ignoring inflation in long-term planning
- Using growth assumptions that are too optimistic
- Not updating plans after major life events
- Taking a single projection as certainty rather than a range of outcomes
Final thoughts
A legal & general pension calculator is most powerful when used regularly. Revisit your numbers at least once a year, and after any major changes in salary, costs, family plans, or retirement goals. By treating your pension as an active plan rather than a passive account, you give yourself more options and more confidence later in life.