Pension Comparison Calculator

Fee drag compounds over decades. A 1.5% annual fee vs 0.3% on the same pension grows to a major gap over 30 years. 500/month over 30 years at 7% net becomes 566,000; at 5.8% net (1.2% higher fees) it becomes 443,000 — 123,000 less. Choosing a low-cost pension provider might be the single most valuable long-term financial decision most people can make.

Run it with sensible defaults

Using monthly contribution of 500, years of 30, pension a net return of 7%, pension b net return of 5.8%, the calculation works out to 126,518.64. The defaults are meant as a starting point, not a recommendation.

The levers in this calculation

The inputs — Monthly Contribution, Years, Pension A Net Return, and Pension B Net Return — do not pull with equal force. Two inputs usually tip the answer one way or the other. Identify which ones matter most by flipping each value past a round threshold and watching whether the option with the lower calculated total changes.

How the math works

Future value of monthly annuity, computed for each pension option. Gap is the cash difference after the full horizon.

How to use this beyond the first run

Re-run the calculation once a year. Life changes — pay rises, new expenses, interest-rate shifts — and the figure that looked right 12 months ago often isn't today. Annual recalibration keeps the plan honest.

What this doesn't capture

The calculation assumes a steady savings rate and a stable interest rate. Real saving journeys include emergencies, windfalls, and rate changes — especially in easy-access products. The figure is a direction of travel, not a guarantee.

Worked example

Suppose two pension providers offer different fee structures. Provider A charges 0.4% annually; Provider B charges 1.6% annually. Both receive 300 monthly contributions over 25 years. Market performance averages 6% gross per year.

• Pension A: net return 5.6% (6% minus 0.4% fees)
• Pension B: net return 4.4% (6% minus 1.6% fees)

The calculator models both scenarios. Pension A accumulates to approximately 147,000. Pension B accumulates to approximately 118,000. The gap is roughly 29,000 — money that went to fees rather than your retirement fund. This gap widens further if you extend the time horizon or increase contributions.

When this calculation matters

This comparison becomes relevant whenever you are evaluating pension providers, assessing the impact of investment fees, or modelling how different return rates affect long-term accumulation. It also applies when comparing two existing pension funds to understand how fee differences translate into final pot sizes.

The calculator is particularly useful when you have a choice of multiple pension schemes or when switching providers — scenarios where the net return (after fees, charges, and fund performance) differs materially between options.

Educational illustration only

This calculator models pension growth based on your inputs. The output estimates outcomes under static conditions and serves as an educational illustration of how contributions, time, and net returns interact. Real pension outcomes depend on actual investment performance, fee changes, contributions history, and tax treatment — all of which vary over time and by jurisdiction. Use this tool to explore relationships between inputs, not to forecast actual retirement values.