Your pension on a £70,000 salary
A £70,000 salary puts you in the top 10% of UK earners of UK earners. Auto-enrolment puts £294/month into your pension by default. Here's what that actually builds to — and what happens when you contribute more.
| Start saving at | 8% (default) | 10% | 15% | 20% |
|---|---|---|---|---|
| Age 25 (42yr) | £400,762 | £500,952 | £751,429 | £1,001,905 |
| Age 30 (37yr) | £309,594 | £386,992 | £580,488 | £773,984 |
| Age 35 (32yr) | £235,554 | £294,443 | £441,664 | £588,886 |
| Age 40 (27yr) | £175,426 | £219,282 | £328,923 | £438,564 |
| Age 45 (22yr) | £126,594 | £158,242 | £237,363 | £316,485 |
| Age 50 (17yr) | £86,937 | £108,671 | £163,006 | £217,342 |
On £70,000, a significant portion of your earnings falls above the higher rate threshold (£50,270). Every £1 of pension contribution on income above that threshold saves 40p in income tax — double the relief a basic rate taxpayer receives. Via salary sacrifice, the combined saving is 42% (40% tax + 2% employee NI above the upper earnings limit).
This is the salary band where pension contributions become dramatically more tax-efficient than ISAs. An ISA contribution comes from post-tax income — after you've already paid 40% tax on the marginal pound. A pension contribution effectively reverses that tax charge. For higher rate taxpayers, the pension is almost always the better home for long-term retirement savings.
Salary sacrifice also saves you 2% employee NI on earnings above £50,270 (and 8% on earnings between £12,570 and £50,270). Combined with income tax relief, the effective cost of a £1,000 pension contribution at this salary is as low as £580. If you have children, pension contributions also reduce your adjusted net income for the High Income Child Benefit Charge — potentially saving hundreds more per year.
These projections use typical assumptions. Your actual outcome depends on your age, pot size, contribution rate, and fund performance.
- •Auto-enrolment contributions are calculated on qualifying earnings (£6,240–£50,270 in 2025/26). Your employer may use a different earnings basis.
- •Projections assume 5% nominal growth, 0.75% annual fees, and a constant salary. Real returns and salary growth will vary.
- •Tax relief rates shown are for rest-of-UK (not Scotland). Scottish income tax bands differ.
- •Figures do not include the state pension (£11,502/yr in 2025/26), which supplements private pension income from age 67.
- •This is general information, not personal financial advice.
This calculator provides estimates based on 2026/27 tax rates and is not financial advice. Scottish taxpayers are subject to different income tax rates and bands. The calculations assume your salary is your only source of income and do not account for benefits in kind or other taxable income.
For personalised guidance on your pension contributions, speak to an FCA-regulated financial adviser. You can find one via Unbiased or VouchedFor.