Question 1

How much will my pension be worth at retirement?

Accepted Answer

It depends on three things: how much you've saved already, how much you contribute each month, and how long you have until retirement. As a rough rule, contributing £200/month from age 30 to 65 at 5% net annual growth produces a pot worth around £225,000. The earlier you start, the more compound growth does the heavy lifting.

Question 2

What is a realistic pension growth rate?

Accepted Answer

The FCA's standard projection rates are 2%, 5%, and 8% per year for low, mid, and high scenarios. 5% is a reasonable middle estimate for a typical UK pension invested in a balanced fund of equities and bonds. Real returns will vary year to year and may be lower in periods of poor market performance.

Question 3

Should I include inflation in my pension projection?

Accepted Answer

This calculator shows nominal figures (today's pounds growing without inflation). To get a real-terms estimate, subtract roughly 2-3% from the assumed growth rate to account for long-term UK inflation. A 5% nominal projection becomes around 2-3% real — meaning a £500,000 nominal pot in 30 years would have the purchasing power of around £200,000-300,000 today.

Question 4

How do fees affect my pension growth?

Accepted Answer

Fees compound just like returns, but in the opposite direction. A 1% annual fee on a £100,000 pot growing at 5% over 30 years costs around £80,000 in lost growth. Even small fee differences make a huge difference over decades. Use our pension fee impact calculator to see the exact cost on your pot.

What could your pension be worth?