Guide
Am I saving enough for retirement
A plain guide to pension projections, the 25x income rule, and how to think about a shortfall without panic.
The 25x rule gives you a target to aim at
The 25x rule says you need a pension pot of roughly 25 times your annual retirement income. This assumes you draw down 4% of the pot each year, which historically has sustained portfolios for 30-year retirements. It is a planning heuristic, not a guarantee — but it gives you a number to work with.
Small increases in contributions have a large effect
Compound growth means an extra £100 per month contributed now can add significantly more to your pot than the same £100 contributed in ten years. If you have a shortfall, the earlier you act on it the lower the monthly contribution increase needed to close the gap.
State pension and other income reduce the target
The full new UK State Pension is roughly £11,500 per year (2025 rates). If you have a full entitlement, your pension pot only needs to fund the gap between the State Pension and your target income. This tool does not include State Pension automatically, so factor it in separately. For complex pension situations, regulated advice is more reliable than a projection tool.