How Much Should You Pay Into Your Pension? A Guide by Age
Most people pay whatever their workplace scheme set as the default and never look at it again. The default is 8% of a slice of your salary, and for most people it is not enough. Here is the old adviser's rule of thumb for what to aim for at each age, and why the year you start matters more than any percentage.
The half your age rule
A rule of thumb used by advisers for decades: take the age you start saving into a pension, halve it, and pay that percentage of your salary in for the rest of your working life. Employer contributions and tax relief count towards it, so it is less painful than it first sounds.
| Age you start | Total to aim for (you + employer + tax relief) |
|---|---|
| 22 | 11% of salary |
| 25 | 12.5% of salary |
| 30 | 15% of salary |
| 35 | 17.5% of salary |
| 40 | 20% of salary |
| 45 | 22.5% of salary |
| 50 | 25% of salary |
Two things to notice. The percentage is set by the age you start, not your current age; someone who began at 25 and kept it up does not need to raise it at 40. And the later you leave it, the harsher the number gets, which is the rule working as intended. It is a rough guide, not a law of nature, but it lands close to what proper retirement modelling suggests for a moderate standard of living.
Why starting beats contributing more
Take someone on £35,000 putting 12% in each year, £4,200 including employer money and tax relief, with the pot growing at 5% a year. Here is what they would have at 67 depending on when they started (our sums, no wage growth, before inflation and fees).
| Started at | Paid in by 67 | Pot at 67 | Growth did |
|---|---|---|---|
| 25 | £176,400 | £596,000 | £420,000 |
| 35 | £134,400 | £332,000 | £198,000 |
| 45 | £92,400 | £170,000 | £77,000 |
| 55 | £50,400 | £70,000 | £20,000 |
The 25-year-old pays in less than twice what the 45-year-old does, but ends up with three and a half times the pot. That gap is compounding, and no realistic contribution rate in your 50s can buy it back. Inflation will make all of these figures feel smaller by retirement, which is one more argument for starting now rather than waiting for a bigger salary.
Why 8% is less than it sounds
The auto-enrolment minimum is 8% (at least 3% from your employer), but it usually applies to qualifying earnings, the band between £6,240 and £50,270, not your whole salary (source: GOV.UK, 2026/27 thresholds). On a £35,000 salary that is £2,301 a year, about 6.6% of actual pay. On £25,000 it is nearer 6%. Some employers pension the full salary; your scheme documents will say which yours does.
What would your percentage build?
Put your own salary, age and contribution rate into our free calculator and see the pot it points to. No sign-up, assumptions in the open.
Try the calculator →Checkpoints by decade
In your 20s
Getting in matters far more than the amount. Never opt out of auto-enrolment; leaving takes free employer money off the table. If 11% total feels impossible, find out whether your employer matches extra contributions and take every percent of match they offer before anything else.
In your 30s
This is the decade contributions tend to stall: mortgages, childcare, one salary doing the work of two. Protect the habit even if you cannot raise the rate. One trick that works: each pay rise, split it, half to you and half to the pension. Your take-home still goes up and your rate creeps towards the target without ever feeling like a cut.
In your 40s
Time to check the destination, not just the savings rate. Compare your projected pot against what a moderate retirement actually costs and adjust while there are still 20-plus years of compounding left. Higher-rate taxpayers should make sure they are claiming the extra tax relief they are owed; many never do.
In your 50s
Catch-up territory. The annual allowance lets most people put in up to £60,000 a year, and children gone plus mortgage shrinking often frees up real money. From April 2028 the earliest you can touch a private pension rises to 57, so late top-ups still have years to grow before you can spend them.
When to pay in more than the rule says
- Your employer matches extra contributions. A match is a guaranteed 100% return before any growth. Nothing else you can do with the money comes close.
- You pay higher-rate tax. Each £100 into the pension costs a 40% taxpayer £60. If your employer offers salary sacrifice, National Insurance savings push the discount further.
- You started late. The rule assumes you keep the percentage up from the start age. Gaps in the middle mean aiming above the number, not at it.
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This article is for general information only and does not constitute financial advice. The half your age rule is a rough guide, and the growth figures are illustrations, not guarantees; real returns vary and can be negative. Figures relate to the 2026/27 tax year and are correct as of July 2026. For advice tailored to you, speak to a financial adviser regulated by the Financial Conduct Authority (FCA), or get free guidance from MoneyHelper.