This tool helps you figure out the "magic number" you need to save to enjoy the retirement lifestyle you want. Here is how to use it in four simple steps.

1. Set Your Income Goal
Start by entering your Desired Annual Income. This is the total amount of money you want to spend each year.

• Pro Tip: If you expect to receive the UK State Pension (currently around £11,500 per year), subtract that from your total goal. For example, if you want £30,000 total, enter £18,500 so the calculator shows what your private savings need to cover.

2. Compare the Three "Pots"
The calculator shows you three different total savings targets based on how "safe" you want to be:

• 4% Rule: The standard benchmark for retirement planning.

• 3.5% Rate: A safer, more conservative goal.

• 3% Rate: The "Gold Standard." This is the most conservative target and provides the highest level of confidence that your money will last your entire life.

3. Create a Monthly Plan
Click the "Show Advanced Plan" button to see how much you need to save each month to reach your target income.

• Years to Save: Enter how many years you have left until you want to stop working.

• Current Savings: Enter what you already have in your pensions, ISAs, or other investments.

• The Result: The calculator will now show a Monthly Savings Needed figure under each pot.

 

4. Optional: Tweak the Math

If you are comfortable with investment basics, you can adjust the Expected Return (how much your money grows) and Inflation (how much prices rise).

• Default Settings: We use 7% growth and 3% inflation, which are standard historical averages. If you aren't sure, it is perfectly fine to leave these as they are!