How to calculate your estimated pension and retirement income

A pension statement will usually tell you:  

• how much your pension is currently worth 
• how much it’s estimated to pay you in retirement 
• when your provider expects you to take your pension, either at your: 
  • normal pension age (NPA) or  
  • selected retirement date (SRD) if you’ve told them a different date. 

You can usually find your pension statement by: 

• logging in to your provider’s online account 
• checking paperwork you’ve received 
• contacting your provider. 

If you’re unable to find your provider’s details, see our guide How to find old or lost pensions.  

For more information about the normal pension age, see When can I take money from my pension?

How your estimated income is calculated depends on the type of pension you have.

You can use our tool to find out your pension type or ask your provider. 

If you have a defined contribution pension, your pension can rise and fall in value until you take the money.  

This is because the amount you get is based on:    

• how much is paid in, including any employer contributions and tax relief 
• how well your invested money performs 
• the pension provider’s charges and fees 
• when and how you choose to take the money. 

Your provider’s estimate is usually based on you converting all your money into guaranteed income at your scheme’s normal pension age – this is called buying an annuity.

This means you might get a different amount if you take the money earlier, later or take it in a different way.  

For more information, see our guide What can I do with my pension pot? 

If you have a defined benefit pension, you’ll usually get monthly guaranteed income based on factors such as: 

• your salary 
• how long you worked for your employer. 

Your pension income will also usually increase each year, based on your scheme’s rules.  

Your provider’s estimate of your income is usually based on: 

• the benefits you’ve already built up 
• you claiming it at your scheme’s normal pension age. 

If you’re still working for the linked employer, your estimate might also show how much you could get if you continued working until the scheme is designed to pay out. 

You can often take up to 25% of your pension as a tax-free lump sum, so your statement should also show: 

• if you’re building up a separate amount to take as a tax-free lump sum or 
• how much your income would reduce by if you took some as a tax-free lump sum. 

How much State Pension you’ll get depends on your National Insurance record. 

To see how much you’re on track to get, you can check your State Pension forecastOpens in a new window on GOV.UK. 

As long as you won’t reach your State Pension ageOpens in a new window within 30 days, you can also get a copy of your forecast by: 

• calling the Future Pension Centre helplineOpens in a new window 
• applying by postOpens in a new window

If your forecast shows you might not qualify for the full amount, there are ways to increase your State Pension.

Think about all the sources of income you plan to have in retirement and when they might start or stop paying. 

For example, you might have some income from :

• working  
• benefits  
• savings and investments, including rental income. 

You can use our Pension calculator to see how much retirement income you might need and how much you’re likely to get from your pensions.  

You can also see how your estimated income might rise or fall if you change:  

• how much you pay in  
• your planned retirement age. 

There are many ways you can increase your retirement income, including:

• paying more into a pension – your employer might also match your contributions  
• checking you’re getting all the tax relief you’re eligible for  
• making sure you’re on track for the maximum State Pension  
• delaying your retirement date.  

For more information, see our guide Ways to boost your pension.  

You can also use our Benefits calculator to check if you’re entitled to any extra payments or grants.