How much should I pay into my pension?
Considering how much you’ll need for a comfortable retirement will help you decide how much to pay into your pension.
Key points:
- The amount you should pay into your pension depends on your retirement goals, age, and current savings.
- Auto-enrolment contributions may not be enough for a comfortable retirement, so consider saving more if you can.
- Starting early means you may need to save less each month to reach your goals.
- Your State Pension, retirement plans, and risk appetite all influence how much you might need to contribute.
If you’ve started a pension, you’ve already made a positive step towards saving for a brighter future. And, no matter where you are in your pension saving journey, it’s important to explore how much money you should pay into it for a comfortable retirement.
The information in this article is for general guidance only and isn’t personal financial advice. Pensions are long‑term investments; their value and the income from them can go down as well as up, so you could get back less than you paid in. Tax rules and how you’re affected can change and depend on your circumstances.
How much income will you need when you retire?
The level of income you’ll need in retirement mostly depends on the lifestyle you hope to have when you retire.
Most people’s expectations are based on their income and lifestyle before retirement, so a general rule is to aim for an income of around two thirds of what you earned at work. Typically, you won’t need as much in retirement because you’re less likely to face costs for things like commuting, National Insurance, or a mortgage.
The Pensions UK (a not-for-profit organisation) publishes annual estimates for ‘retirement livings standards’ at three levels of income: ‘minimum,’ ‘moderate,’ and ‘comfortable.’ Here are their estimates for 2025/2026:
| Minimum annual income | Moderate annual income | Comfortable annual income | |
|---|---|---|---|
| Single person | £13,400 | £31,700 | £43,900 |
| Couple | £21,600 | £43,900 | £60,600 |
Visit the Pensions UK website to learn more about retirement living standards.
What pension will I get from the State Pension?
For 2026/2027, the full new State Pension is £241.30 a week (from 6 April 2026). It increases each year by the “triple lock” (the highest of average earnings growth, CPI inflation, or 2.5%). Footnote [1] Footnote [2]
Your amount depends on your National Insurance (NI) record. You usually need at least 10 qualifying years to receive a State Pension. If your NI record started after April 2016, you’ll need 35 qualifying years for the full rate. If you had NI history before April 2016, transitional rules apply and factors like past “contracting out” can mean you need more than 35 years (or you may receive a different amount). Footnote [2] Footnote [3]
To see your personalised figure, and whether you can fill NI gaps, check out the official State Pension forecast. It shows your estimated weekly amount, the date you can claim, and ways to boost entitlement if possible.
To learn more about the State Pension, check out our article: How does the State Pension work?
Typical pension contributions in the UK
Most workers are automatically put into a workplace pension. By law, at least 8% of your eligible pay goes in each year: 5% from you (including tax relief) and at least 3% from your employer. You can both pay more.Footnote [4]
These minimums are usually worked out on the part of your earnings between £6,240 and £50,270 a year before tax.Footnote [4]
Some employees contribute only the legal minimum under automatic enrolment, which can result in a lower retirement income. Increasing contributions, particularly where your employer matches or pays above the minimum, can strengthen long-term pension savings. So, it may be worth reviewing your pension scheme information (and your payslip) to confirm what you and your employer currently contribute and whether you can increase your rate.
What is a good pension contribution?
There isn’t one “right” number for everyone. The law only sets a minimum. In most workplace pensions, at least 8% of certain earnings goes in each year: 3% from your employer and 5% from you. That’s the floor, not the target. Footnote [5]
As a simple benchmark, some people aim for total contributions of around 10–15% of pay over time (if it’s affordable). The right figure varies by person, so use this as a guide rather than a rule.
A simple way to choose your own target is to check a forecast to see what your pension could be with your current payments, and how paying in a bit more might change the result.
Take the full employer boost where possible. If your employer matches what you pay in, raising your own amount could mean they pay more too, which may help your pot grow faster. But paying more into your pension may leave you with less money to live on now, so whether this is right for you will depend on your own circumstances.
How you can estimate your future pension pot
You could start with our pension calculator to get a quick estimate of what your pension pot and income could look like. It takes a few details (age, current pot, what you and your employer pay in, and when you’d like to retire) and lets you try out different “what if” scenarios.
When you use the calculator, it’s helpful to review and adjust the key assumptions so the estimate reflects your plans:
Growth – try lower, medium and higher growth rates to see a range.
Inflation – check how rising prices might affect future income.
Retirement age – nudge this up or down to see the impact of retiring earlier or later.
It’s a good idea to re‑run your forecast after any change such as a pay rise, a change in employer contributions, or a one‑off top‑up. Small tweaks can make a noticeable difference over time.
And it’s worth noting that this is guidance, not personal advice. The figures are estimates, not guarantees, and the value of investments can go down as well as up.
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