Pension Auto-Enrolment Compound Calculator
Lifetime value of auto-enrolment pension contributions from employee + employer.
Compound lifetime value of auto-enrolment pension contributions — employee and employer combined. Enter salary to see compound pot value at retirement.
What this tool does
Auto-enrolment pensions typically combine employee and employer contributions to 5-12% of salary. Enter salary, combined contribution rate, years, and return. The tool returns the compound pot value at retirement.
Enter Values
Formula Used
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Disclaimer
Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.
40,000 salary with 8% combined contribution (5% employee + 3% employer) invested at 6% over 40 years compounds to roughly 495,000. Auto-enrolment is designed to build meaningful pots from contributions most employees don't notice; the compound effect over a career is substantial.
Why this matters
Default auto-enrolment minimum 8%) gets most workers started but rarely funds a comfortable retirement alone. Most planners recommend 12-15% combined over a full career for a 70-80% income replacement ratio. This tool shows what the defaults deliver vs higher contributions.
Run it with sensible defaults
Using annual salary of 40,000, combined contribution rate of 8%, annual return of 6%, years to retirement of 40 years, the calculation works out to 495,238.29. Nudge the inputs toward your own situation and the output recalculates instantly. The defaults are meant as a starting point, not a recommendation.
The levers in this calculation
The inputs — Annual Salary, Combined Contribution Rate, Annual Return, and Years to Retirement — do not pull with equal force. The rate and the time horizon usually dominate — compounding means a small change in either reshapes the final figure more than a similar shift in contribution size. Test this by doubling one input at a time.
How the math works
Annual contribution is salary × rate. FV of ordinary annuity with annual contributions. Assumes constant salary — real salary growth increases the result substantially. The working is transparent — you can verify every step yourself in the formula section below. No black box, no opaque "proprietary model".
Why the number matters
Saving without a target is like driving without a destination — you'll make progress, but you won't know when you've arrived. This tool gives you a concrete figure to work toward, which is the first step in turning a vague intention into an actual plan.
What this doesn't capture
The calculation assumes a steady savings rate and a stable interest rate. Real saving journeys include emergencies, windfalls, and rate changes — especially in easy-access products. The figure is a direction of travel, not a guarantee.
Compound pension pot from auto-enrolment contributions is shown above.
Inputs
This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.
Sources & Methodology
Methodology
Annual contribution is salary × rate. FV of ordinary annuity with annual contributions. Assumes constant salary — real salary growth increases the result substantially.
Frequently Asked Questions
Does this assume salary growth?
What contribution rate should I aim for?
Include state pension?
Tax on contributions?
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