Do pension calculators account for inflation — and how do I plan in real terms?
09 April 2026
Question by Boring Money reader
Pension calculator in real terms. I worry that all my plans are in today's money and inflation will knock a hole in them — but I don't know how to calculate around that. Is inflation already included in the calculators?
Answered by Boring Money
Whether inflation is built in really depends on the individual calculator — there's no single answer, so it's always worth checking the small print or methodology notes for whichever tool you're using.
Starting with today's money is a useful first step — it gives you a concrete anchor. Pensions UK publishes a helpful guide called the Retirement Living Standards, which sets out three tiers of retirement income in current figures: minimum (£13,400 a year for a single person), moderate (£31,700), and comfortable (£43,900). Working out which tier fits the retirement you're envisioning is a good place to start.
It's also worth remembering that the full new State Pension is currently around £12,547 a year or £241.3 per week— already below even the minimum tier — so the gap between what the State provides and what you actually need is likely bigger than you think, even before inflation enters the picture.
If you want to get properly on top of all of this — including how to think about your own magic number — our course walks you through it step by step:
