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Retirement gap calculator UK

Retirement Income Gap Calculator: Will Your Pension Be Enough?

Bridging the Chasm Between Expectations and Reality

Many people underestimate how much income they may need later on. This calculator compares your projected retirement income with your target spending so you can see whether there is a gap to fill.

Beginner-friendly estimate with simple assumptions. Use the examples if you want a quick starting point.

Example presets

These examples show a plan that looks comfortable, one that needs a boost, and one that started later.

Estimate your retirement income gap

Enter your current pension position and the retirement income you want to see whether the plan looks close or stretched.

What the projection is saying

Projected pot at retirement

£531,890

Income from projected pot

£21,276

Using a 4.0% withdrawal rate.

Total projected retirement income

£33,276

Guaranteed income plus the drawdown estimate from your pot.

Annual income gap

£0

How much income would still be missing on these assumptions.

Pot needed to cover the gap

£0

The extra capital implied by the chosen withdrawal rate.

Example scenario

Example scenario

This example shows how a retirement income gap can appear even when you already have some pension savings.

  • Target retirement income: £30,000 a year
  • Expected income from pensions and State Pension: £22,000
  • Estimated shortfall: £8,000 a year
  • Gap reviewed in today’s spending terms

This gives you a starting point for judging whether you may need to save more, work longer, or plan for lower spending later on.

Learn the basics

How the Retirement Income Gap Calculator: Will Your Pension Be Enough? Works

The Three Pillars of UK Retirement

The State Pension: This can provide a helpful foundation if you have built enough National Insurance record, but on its own it may not support a "moderate" retirement lifestyle for many households.

Workplace and private pensions usually do the heavy lifting. A common planning shortcut is to estimate what income your pension pot might support each year, while remembering that real returns and withdrawal rates are never guaranteed.

ISAs and other savings add flexibility. They can be especially useful if you want to retire before State Pension age or if you want a tax-free bridge to cover the gap between stopping work and later pension income.

Pros vs cons

Pros

  • Helps you see whether your expected retirement income looks enough for the lifestyle you want.
  • Brings together State Pension, private pensions, and other savings in one simple estimate.
  • Useful for spotting a shortfall early enough to adjust contributions or plans.

Cons

  • Retirement planning depends on uncertain factors such as inflation, investment returns, and lifespan.
  • A simple gap estimate cannot replace full financial planning for complex situations.
  • State Pension rules and pension access ages can change over time.

Glossary

State Pension
The regular income paid by the UK government in later life if you have built enough qualifying National Insurance years.
Retirement gap
The shortfall between your target retirement income and the income your current plan is expected to deliver.

Frequently asked questions

What is the retirement gap?+

It is the difference between the income you want in retirement and the income your current plan may provide. That gap often has to be filled by extra savings, later retirement, or lower spending.

When can I claim my State Pension?+

For many people reaching retirement in the later 2020s, State Pension age is 67, but the exact age depends on your date of birth and future policy decisions. It is worth checking the latest official forecast.

How can I close the gap?+

Common options include increasing pension contributions, saving into an ISA, working longer, or reducing the level of income you want later on.

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These calculators are for educational purposes only and do not constitute financial advice.

They use simplified assumptions and browser-based estimates. Read the full disclaimer before making important decisions.