401(k) Calculator 2026
Project your retirement pot with employer match, compound growth, and tax relief.
2026 limits: $24,500 (under 50) | $32,500 (50+) | $35,750 (60–63)
e.g. "100% match up to 6%" → enter 6
401(k) & Pension Planning in 2026
Saving into a 401(k) or workplace pension is one of the most tax-efficient ways to build retirement wealth. In the US, contributions reduce your taxable income and grow tax-deferred. In the UK, basic-rate tax relief is added automatically, and employer contributions are essentially free money you should never leave on the table.
2026 Contribution Limits
| Plan | Limit | Notes |
|---|---|---|
| 🇺🇸 401(k) under 50 | $24,500/yr | Employee contributions only |
| 🇺🇸 401(k) age 50+ | $32,500/yr | +$8,000 catch-up contribution |
| 🇺🇸 401(k) age 60–63 | $35,750/yr | Super catch-up (SECURE 2.0) |
| 🇺🇸 Total incl. employer | $72,000/yr | Employee + employer combined |
| 🇬🇧 UK Annual Allowance | £60,000/yr | Employee + employer + tax relief |
| 🇬🇧 Auto-enrolment min. | 8% of qualifying earnings | 5% employee + 3% employer |
| 🇬🇧 State Pension (2026) | £230.25/week | 35 qualifying NI years needed |
Don't Leave the Employer Match on the Table
An employer match is the closest thing to free money in personal finance. If your employer matches 100% of the first 5% of salary you contribute, that is an instant 100% return before your investments grow at all. On a $60,000 salary, contributing 5% ($3,000) earns another $3,000 from your employer every year. Skipping it is effectively turning down a pay rise. The first rule of retirement saving is: always contribute at least enough to capture the full match.
Getting the Most From Your Pension or 401(k)
- Increase contributions with every raise. Bumping your rate by 1% each time you get a pay rise barely dents take-home pay but hugely lifts your final pot.
- Mind the annual limits. The US 401(k) limit is $24,500 for 2026 (plus catch-up if over 50); the UK annual allowance is £60,000. Contributions above these lose the tax advantage.
- Keep fees low. Over decades, a 1% fee difference can cost tens of thousands — check your fund charges.
- Don't cash out when changing jobs. Roll over or transfer instead, so the balance keeps compounding.
Frequently Asked Questions
How much should I contribute to my 401(k)?
At minimum, contribute enough to get your full employer match — that's an instant 50–100% return on your money. Beyond that, aim for 15% of your income including employer contributions. The 2026 IRS limit is $24,500 (under 50) or $32,500 (50+).
What is the UK pension annual allowance for 2026?
The annual allowance for 2026/27 is £60,000, covering all contributions from you, your employer, and tax relief. If your adjusted income exceeds £260,000, the allowance tapers down to a minimum of £10,000.
How much do I need to retire comfortably?
A common rule is to multiply your desired annual retirement income by 25 (the 4% rule). To spend £30,000/year in the UK, you'd need a pot of £750,000. The UK State Pension (£11,973/yr in 2026) reduces how much you need to save.
When can I access my 401(k) or pension?
In the US, you can access 401(k) funds without penalty from age 59½. In the UK, the minimum pension access age is currently 55, rising to 57 in April 2028.
What to work out next
⚠️ Disclaimer: Results are estimates only and do not constitute financial, tax, or legal advice. Tax laws change frequently — always verify with official sources (IRS, HMRC) and consult a qualified professional before making decisions.
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