All Pension Rates Compared
| Pension % | Annual Pension | Take Home/Year | Take Home/Month |
|---|---|---|---|
| 0% (no pension) | £0 | £23,680 | £1,973 |
| 3% | £840 | £23,075 | £1,923 |
| 5% | £1,400 | £22,672 | £1,889 |
| 8% | £2,240 | £22,067 | £1,839 |
| 10% | £2,800 | £21,664 | £1,805 |
With a 5% pension contribution, your pension costs you £84/month in take home — but you're saving £1,400/year for retirement. Your employer likely adds another 3%+ on top. Don't opt out!
Understanding Your Pension on £28,000
On a salary of £28,000, your marginal tax rate is the basic rate (20%). This means every £100 you contribute to your pension via salary sacrifice saves you £20 in income tax, plus National Insurance savings on top. Pension contributions are one of the most tax-efficient ways to save.
Employer Contributions
Most employers contribute a minimum of 3% under auto-enrolment, though many offer more generous matching schemes. At your salary level, even a 3% employer contribution adds £840 per year to your pension pot — this is free money you should not leave on the table.
Salary Sacrifice vs Net Pay
Salary sacrifice pension contributions at £28,000 save you both income tax (20%) and National Insurance (8%), making every £100 of pension contribution cost you only about £72 in take home pay. This is more efficient than making contributions from net pay. For a detailed comparison, try our salary sacrifice calculator.
Building Your Retirement Pot
Contributing 5% of your salary means saving £1,400 per year. Over a 30-year career with investment growth, this could build a pension pot of approximately £63,000. Combined with the State Pension (currently £11,502/year at full rate), this provides a foundation for retirement — though most advisers recommend saving 12-15% of salary (including employer contributions) for a comfortable retirement. See the full breakdown of your take home pay at £28,000 salary after tax.
Calculate with any pension rate
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