Pension Bible
Pension on salary

Pension on a £28,000 salary — around the UK median.

What pension can you build on a £28,000 salary? See realistic UK retirement projections, tax breakdown, and contribution scenarios.

£28,000 is approximately the UK median full-time gross salary across all age groups. At this band you're paying around £3,086 in income tax and £1,234 in employee NI annually. The myth that most damages pension outcomes for median earners is 'auto-enrolment is enough'. The truth is that 8% of band earnings (around £1,740/year on £28k) compounded for 40 years produces a retirement pot of around £160,000 — which sounds like a lot but only generates around £6,400/year of safe drawdown income. Combined with the full state pension that's £18,000/year before tax, well below the PLSA 'minimum' retirement standard. The fix is straightforward: ratchet your contribution rate up by 1% every time you get a pay rise. Most people won't notice the difference month-to-month and the long-term impact is transformative.

£28,000 salary — 2025/26 breakdown
Personal allowance£12,570
Tax bandBasic rate (20%)
Income tax£3,086
Employee NI£1,234
Take-home pay (before pension contributions)£23,680
Auto-enrolment minimum on this salary
On the qualifying band (£6,240 to £50,270), your employer must contribute at least £653/year (3%) and you must contribute £1,088/year (5%) — totalling £1,741/year going into your pension. Most savers can and should contribute more than this minimum.
Contribution scenarios
30 years at 5% net growth · 0.5% fees
RATE
PER MONTH
PER YEAR
POT AT 30 YRS
5%
Auto-enrolment minimum
£117
£1,400
£88,595
8%
Total auto-enrolment
£187
£2,240
£141,752
12%
Recommended floor
£280
£3,360
£212,628
15%
Comfortable target
£350
£4,200
£265,785
Projections assume contributions to a personal pension at the rate shown, with no starting pot, no employer match, and no inflation adjustment. Real returns will vary — these are illustrative figures only.
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