Retirement Income Calculator UK

Enter the monthly income you want in retirement and we work backwards to the pot size you need. Includes the State Pension deduction, and uses the Trinity-Study 4% rule as the sustainable withdrawal benchmark.

Pennywise Finance Editorial

4% rule from the Trinity Study (safe withdrawal rate for ~30-year horizon, 50-75% equity portfolio). State Pension default is the 2026/27 full new rate (~£12,548/yr, £241.30/week).

Fact-checked
Reviewed September 2026
About our calculators

Runs entirely in your browser — your numbers are never sent to a server.

Your numbers

Target monthly net income£

Full State Pension (annual)£

Full new state pension 2026/27 ~£12,548/yr (£241.30/week — gov.uk).

Withdrawal rate%

4% is the Trinity benchmark. 3-3.5% is more conservative.

Average income tax rate on pension%

Pension income is taxable above personal allowance.

Result

Target pot needed—

Annual income from pot—

Annual income from State—

Total annual gross—

How much do you need?

Rough rule of thumb for UK retirees:

Minimum (£14k/yr): covers essentials — rent/mortgage done, basic food, utilities
Moderate (£31k/yr): comfortable lifestyle with some travel
Comfortable (£43k/yr): UK PLSA "comfortable" standard — regular holidays, some luxuries

(Source: PLSA Retirement Living Standards.) Figures are per person — a couple needs 1.5x not 2x.

What is the 4% rule?

From a 1990s US study — a portfolio of 50-75% equities, withdrawing 4% of starting value in year one, uprated for inflation, had very high survival rates over 30 years. UK applications typically use 3.5-4%.

Factors this does NOT capture

Sequence-of-returns risk (bad early years can devastate a plan)
Long-term care costs
Inheritance plans
Partial-year retirement / phased draw-down
Final-salary (DB) pensions you may receive

Frequently asked questions

Is 4% safe?

In most historical scenarios, yes. Current conditions (low bond yields, high equity valuations) make 3.5% more defensible. For retirements starting over 35 years, 3% is a sensible floor.

Should I subtract tax?

Yes — pension income is taxable above the personal allowance (£12,570). State Pension counts towards this.

What about inflation?

The 4% rule assumes you uprate withdrawals annually for inflation. The calculator shows today's pot size — in real terms.

Projections assume a fixed annual return — real markets do not return the same figure every year. Capital at risk. Past performance does not guarantee future results. General information only, not personalised financial advice.