Turn a desired retirement income into a target pot using a safe withdrawal rate — then see if your current savings trajectory gets you there.
All figures in today's money using a real (after-inflation) growth rate. The 4% rule is a planning guideline from historical data, not a guarantee. The full new State Pension is £11,973/year in 2026/27 — check your forecast on GOV.UK.
Your pot must generate your desired income minus any State Pension. Dividing that by a safe withdrawal rate (the classic guideline is 4%) gives the pot size: needing £12,000 a year from savings at 4% means a £300,000 target. Retiring before State Pension age? You'll need extra to bridge the gap years — and remember pension withdrawals beyond the 25% tax-free lump sum are taxable income, so gross needs exceed net wants. Model contributions tax relief with our Pension Tax Relief Calculator.
A guideline from historical US market data suggesting you can withdraw 4% of your pot in year one, rising with inflation, with a low chance of running out over 30 years. Many UK planners use 3–3.5% to be safer.
The PLSA's retirement living standards suggest a single person needs roughly £14k/year for a minimum lifestyle, £31k for moderate and £43k for comfortable — the State Pension covers a large slice of the minimum.
If you're under 50, some prefer planning without it as a margin of safety. It's currently £11,973/year (full new State Pension, 2026/27) from age 66–68 depending on your birth year.
Yes — beyond the 25% tax-free lump sum, withdrawals are taxed as income. A £24,000 gross withdrawal is not £24,000 in your pocket, so build tax into your income target.