About PoundSense
Who We Are
PoundSense was built by a UK-based software architect who wanted a better way to understand pension projections without paying for financial advice or trusting opaque tools from pension providers. We believe everyone deserves free, transparent access to retirement planning tools.
Why We Built This
Most pension calculators online are either oversimplified, require you to hand over personal data, or are designed to funnel you into buying a product. PoundSense is different: it's free, runs entirely in your browser (no data is sent to any server), and shows you the full picture — including tax relief, salary sacrifice benefits, state pension integration, and inflation-adjusted projections.
We were inspired by the excellent retirement planning resources on r/UKPersonalFinance and wanted to turn that guidance into an interactive, visual tool.
Our Methodology
The PoundSense calculator uses a deterministic compound-growth model, projecting your pension pot year by year from your current age to life expectancy. Key methodology points:
- All projections are in today's money — growth rates are real (after inflation), so contributions stay flat to represent inflation-adjusted values.
- Accumulation phase: Monthly contributions (personal + employer) compound at your chosen annual growth rate until retirement age.
- Drawdown phase: A percentage of the remaining pot is withdrawn annually, with the remainder continuing to grow at a separate retirement growth rate.
- State pension: Integrated using the current full new State Pension rate (£241.30/week for 2026/27), added to private pension income.
- Tax calculations: Based on current UK income tax bands (2026/27), applied to pension income in retirement when enabled.
- 25% tax-free lump sum: Calculated as 25% of the pot at retirement, with an option to keep it invested separately.
- Three-scenario projections: Pessimistic (3%), central (your rate), and optimistic (7%) growth to show a range of outcomes.
Data Sources
- State Pension rates: GOV.UK — New State Pension
- Tax bands & allowances: GOV.UK — Income Tax rates
- Retirement Living Standards: PLSA Retirement Living Standards (2026/27 figures)
- NI thresholds: GOV.UK — National Insurance
Important Disclaimer
PoundSense does not provide financial advice. The calculator is an educational tool to help you understand pension projections and explore different scenarios.
Projections are based on assumptions that may not reflect actual market performance. Past growth rates do not guarantee future returns. Tax rules and State Pension rates may change.
For personalised financial advice, please consult a qualified, FCA-regulated financial adviser. You can find one at unbiased.co.uk.
Have feedback or found a bug? Try the calculator or reach out via our social channels.