Retirement guide · UK · Updated October 2026
How much should I put into my pension?
Short answer: the legal minimum in a workplace pension is 8% of qualifying earnings (5% from you, 3% from your employer), but that alone won't get most people to a moderate retirement. A popular rule of thumb is to save half your age as a percentage of salary when you start: 15% at 30, 20% at 40, 25% at 50, including employer money and tax relief. Whatever you can manage, the most important thing is to start and to raise it over time.
The minimum: workplace auto-enrolment
If you're employed, aged 22 or over and earn more than £10,000 a year, your employer must enrol you in a workplace pension. In 2026/27 the minimum is 8% of your earnings between £6,240 and £50,270:
| Who pays | Minimum | Example: £30,000 salary |
|---|---|---|
| You (including tax relief) | 5% | about £22.85 a week (about £18.30 from your pay after tax relief) |
| Your employer | 3% | about £13.70 a week |
| Total | 8% | about £36.55 a week |
Paid from 40 to 67, that £36.55 a week could build a pot of about £83,000, adding roughly £64 a week to the State Pension (6% growth after fees, today's money). Helpful, but well short of a moderate retirement. That's why most people need to pay in more than the minimum.
Never opt out to save money if you can avoid it. Leaving means giving up your employer's contribution and the tax relief: for every £18 or so you keep, you'd lose about £36 going into your pension.
What you'd need for a moderate retirement
This is roughly what you'd need to put in each week (including basic-rate tax relief) to reach the Pensions UK moderate standard of £32,700 a year at 67, with the full State Pension and nothing saved so far:
| Start at | Moderate (£32,700 a year) | Minimum (£13,900 a year) |
|---|---|---|
| 25 | about £84 a week | about £6 a week |
| 30 | about £106 a week | about £7 a week |
| 35 | about £135 a week | about £9 a week |
| 40 | about £177 a week | about £12 a week |
| 45 | about £238 a week | about £16 a week |
| 50 | about £339 a week | about £23 a week |
| 55 | about £525 a week | about £35 a week |
Employer contributions count towards these amounts, and so does anything you've already saved. The pattern is the real lesson: every five years you wait, the weekly amount needed jumps by a quarter or more.
Middle estimate: 6% growth a year after fees, 2.5% inflation, payments rising with inflation, 4% rule of thumb for income, one person outside London. See How much pension do I need?
What an extra £10 a week is worth
Small increases matter more than people think. With basic-rate tax relief, £10 a week from your pocket puts £12.50 into your pension. By 67 that could be worth:
| Start at | Pot at 67 | Adds a week in retirement |
|---|---|---|
| 30 | about £47,600 | +£37 |
| 40 | about £28,500 | +£22 |
| 50 | about £14,900 | +£11 |
Check your contributions
See what your pension contributions could build by 67.
By 67, your pot could be around
—
More calculators: start now vs wait, habit swaps, what do I need →
How tax relief works
The government tops up your pension contributions. If you're a basic-rate taxpayer, every £80 you pay becomes £100 in your pension. Higher-rate taxpayers can claim back a further 20% (and additional-rate taxpayers 25%), often through a Self Assessment tax return, so it's worth checking you've claimed it.
You can usually pay in up to £60,000 a year (the annual allowance) or 100% of your earnings, whichever is lower, and still get tax relief. If you've already started taking money flexibly from a pension, a lower limit of £10,000 may apply.
Quick questions
Is 8% enough for a pension?
For most people, no. The 8% minimum is a floor, not a target. Paid from 40 on a £30,000 salary it could add about £64 a week in retirement, which with the State Pension lands just above the minimum standard.
What is the "half your age" rule?
A simple rule of thumb: take your age when you start saving and halve it. That's the percentage of salary to put into your pension each year, including your employer's contribution and tax relief. Starting at 30 means about 15%; at 40, about 20%.
Should I pay off debt or pay into my pension?
Expensive debt like credit cards usually comes first. But always pay in enough to get your full employer contribution, because that's an instant boost you can't get any other way.
Starting from zero? Nick is building wealth publicly, one week at a time, and his book No Pension. No Problem. shows how to start.
General information, not financial advice. Figures are illustrations, not promises. Investments can fall as well as rise and you may get back less than you put in. Tax rules can change and depend on your circumstances. For free, impartial guidance use the government-backed MoneyHelper service; for advice, speak to a regulated financial adviser. Figures checked October 2026: auto-enrolment thresholds 2026/27 (£10,000 trigger, £6,240 to £50,270 qualifying earnings, 8% minimum); Pensions UK Retirement Living Standards 2026; full new State Pension 2026/27.