FinToolSuite

Pension Comparison Calculator

Updated April 17, 2026 · Savings · Educational use only ·

Compare projected pension pots under two scenarios.

Compare projected pension pot values under two fee and return scenarios for the same contributions and horizon. Enter years to see both final pots and the gap.

What this tool does

Enter contributions, years, and fees plus returns for two pensions. The tool shows both final pots and the gap.


Enter Values

Formula Used
Monthly payment
Monthly return
Total months

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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.

Fee drag compounds over decades. A 1.5% annual fee vs 0.3% on the same pension grows to a major gap over 30 years. 500/month over 30 years at 7% net becomes 566,000; at 5.8% net (1.2% higher fees) it becomes 443,000 — 123,000 less. Choosing a low-cost pension provider might be the single most valuable long-term financial decision most people can make.

Run it with sensible defaults

Using monthly contribution of 500, years of 30, pension a net return of 7%, pension b net return of 5.8%, the calculation works out to 126,518.64. 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 — Monthly Contribution, Years, Pension A Net Return, and Pension B Net Return — do not pull with equal force. Two inputs usually tip the answer one way or the other. Identify which ones matter most by flipping each value past a round threshold and watching whether the winning option changes.

How the math works

Future value of monthly annuity, computed for each pension option. Gap is the cash difference after the full horizon. The working is transparent — you can verify every step yourself in the formula section below. No black box, no opaque "proprietary model".

How to use this beyond the first run

Re-run the calculation once a year. Life changes — pay rises, new expenses, interest-rate shifts — and the figure that looked right 12 months ago often isn't today. Annual recalibration keeps the plan honest.

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.

Example Scenario

Pension comparison produces two pot sizes based on the inputs provided.

Inputs

Monthly Contribution:500 £
Years:30
Pension A Net Return:7
Pension B Net Return:5.8
Expected Result£126,518.64

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

Future value of monthly annuity, computed for each pension option. Gap is the cash difference after the full horizon.

Frequently Asked Questions

Why do fees matter so much?
Because they compound. A 1% higher fee means 1% less compound growth every year, for decades. The effect is non-linear and often underestimated.
Net vs gross return?
Enter the return after all fees and charges. Most providers publish gross return and fee separately — subtract before entering.
What about employer contributions?
Add them to monthly contribution. Employer match is essentially free money; pensions with lower fees don't change the match amount.
Is cheapest always best?
Usually yes once you are comparing tracker funds, which are similar. Active funds might justify higher fees if they deliver — though most don't long-term.

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