The projection combines two elements: the future value of your existing pot (compound growth), and the future value of your monthly contributions (annuity formula). A 5% annual growth rate is a reasonable middle estimate — historical UK pension fund average is roughly 5–7% before inflation.
How much should I be saving in my pension?
A common rule of thumb is to save half your age as a percentage of your salary. So if you start at 30, save 15%. The minimum auto-enrolment contribution is 8% combined (3% employer + 5% employee).
What is the State Pension?
The full UK State Pension (2024/25) is £11,502 per year for those with 35+ qualifying NI years. This is not included in this projection — add it to your expected retirement income.