Retirement gap
Project your pension pot to retirement age and compare it with the pot a target income would typically need.
The pot compounds monthly with your contributions until retirement age.
The pot compounds monthly with your contributions until retirement age. The target is your desired income divided by 4% — a common illustrative rule of thumb for what a pot can sustainably pay out.
The gap is the difference. It is not a verdict: State Pension, other assets and a different withdrawal rate all change the picture, and none of them are modelled here.
Formula
target = income ÷ 0.04; gap = target − FV(pot, contributions)
FV compounds monthly at the assumed growth rate.
- 014% withdrawal rate is illustrative, not a recommendation; sustainable rates depend on age, markets and flexibility.
- 02State Pension and other income are excluded.
- 03Nominal figures; inflation, charges and tax are ignored.
- 04Contributions constant to retirement.
Holding everything else at your inputs
Each row changes one variable and shows the result. It illustrates which assumptions the answer is most sensitive to — it does not suggest which to choose.
| Variable | Changed to | Gap | vs your result |
|---|
Reminder: retirement decisions are complex, high-stakes and often irreversible — the textbook case for regulated advice. This tool is general education only and not a personal recommendation. Find and vet an FCA-authorised adviser with our toolkit.