Am I on track for retirement?
You know you should be saving for retirement but you've got no idea if you're doing enough. Here's how to work it out — without the jargon.
Most people don't think about retirement until it's uncomfortably close. By which point the maths gets much harder — because compound interest needs time to do its thing, and every year you wait is a year you can't get back.
The good news: if you're reading this in your 20s or 30s, you've got the single most valuable thing in pension saving — time. Even small changes now can be worth tens of thousands later.
Let's figure out where you stand.
What does “enough” actually look like?
The Pensions and Lifetime Savings Association works out what different retirement lifestyles actually cost. Their numbers for a single person (outside London):
These assume you'll also get the full state pension (currently £12,547.6/year). The pot is what you need on top of that. If you won't qualify for the full state pension — fewer than 35 qualifying years of National Insurance — you'll need more.
Where Sam stands right now
Sam's pension projection
Age: 28
Current pot: £12,500
Monthly going in: £253(5% + 3% employer)
Projected at 68 (5% growth): £454,748
Target (moderate retirement): £439,000
Gap: On track!
Sam's projected pot vs. retirement targets
How to close the gap
If you're short — and most people in their 20s and 30s are — there are a few levers you can pull:
Increase your contributions. Even 1–2% more of your salary makes a massive difference over decades. If your employer offers salary sacrifice, use it — you save on income tax and National Insurance, which means a £100 pension contribution might only “cost” you £60 in take-home pay.
Check your employer will match more. Some employers match up to 5% or even higher, but only if you contribute that much. If you're leaving match money on the table, that's the highest priority change you can make. It's free money.
Consolidate old pots. If you've got pensions from previous jobs charging 1%+ in fees, moving them to a cheaper provider keeps more of your money growing. Over 30 years, the fee difference on a £30k pot can be worth £40k+.
Don't ignore your state pension. Check your forecast on the government website — it takes 2 minutes. You need 35 qualifying years of NI contributions for the full amount (£12,547.6/year). If you've got gaps, you might be able to buy extra years — sometimes for as little as £800 for an extra £300/year for life.
The “half your age” rule
Quick rule of thumb for what percentage of your salary should go into your pension (including employer match): take the age you started saving, halve it, and that's your target.
Started at 22? Aim for 11%. Started at 30? Aim for 15%. It's not perfect maths, but it's a decent sanity check. Most people on auto-enrolment are putting in 8% total (5% + 3% employer) — which is better than nothing but probably not enough for a comfortable retirement.
39% of UK adults aren't on track for even a minimum retirement lifestyle. 60% of 30-somethings know they're not saving enough but haven't done anything about it. If that's you — you're in the majority, and the fix starts with knowing your numbers.
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