Pension Calculator
Calculate your pension benefits based on years of service, salary, and benefit multiplier. Estimate monthly retirement income and compare survivor benefit options.
Pension Benefits
Monthly Benefit
$4,000
Annual Benefit
$48,000
60.0% replacement rate
Pension Type
Select your pension formula type
Service & Age
Years of service and age parameters
Survivor Benefit Option
Choose payout continuation for beneficiaries
Salary vs Pension Income
Compare your current salary to pension
Your pension replaces 60.0% of your final salary. Most financial advisors recommend 70-80% replacement rate for comfortable retirement.
How Your Pension is Calculated
Formula and calculation breakdown
Final Average Formula:
Annual Pension = Final Salary × Years × Multiplier
= $80,000 × 30 × 2% = $48,000/year
Survivor Options Comparison
Compare different payout options
| Option | Your Benefit | Survivor Gets |
|---|---|---|
| Single Life | $4,000/mo | None |
| Joint & 50% | $3,680/mo | $1,840/mo |
| Joint & 75% | $3,520/mo | $2,640/mo |
| Joint & 100% | $3,280/mo | $3,280/mo |
What if I worked longer?
See how additional years of service affect your pension
Personalized Insights
2 insights based on your inputs
Consider Survivor Benefits
Single-life pays the highest monthly benefit but stops at death. If you have a spouse, consider joint & survivor options for continued income protection.
Pension May Beat Lump Sum
Your monthly pension ($4,000) likely exceeds what you'd safely withdraw from the lump sum equivalent ($2,174/mo at 4% rule).
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Pension Benefits
Monthly Benefit
$4,000
Annual Benefit
$48,000
60.0% replacement rate
Quick Answer
Pension benefits typically use a formula: Years of Service × Benefit Multiplier × Final Average Salary. Most pensions use 1.5-2.5% multiplier. Use our calculator to estimate your benefit.
Key Facts
- Pension formula: Years × Multiplier × Final Salary
- Typical multiplier: 1.5-2.5% per year
- Final average salary usually highest 3-5 years
- Early retirement reduces benefits
- Survivor benefits protect spouse
- Consider lump sum vs annuity options
Frequently Asked Questions
A pension is a retirement plan where an employer promises to pay you a set monthly benefit for life after retirement. The benefit is typically based on your salary and years of service. Unlike 401(k)s, the employer bears the investment risk.
Most pensions use this formula: Final Average Salary × Years of Service × Benefit Multiplier. For example, with a 2% multiplier and 30 years of service, you'd receive 60% (2% × 30) of your final average salary annually.
The benefit multiplier (or accrual rate) is the percentage of salary you earn for each year of service. Common multipliers range from 1.5% to 2.5%. A 2% multiplier means each year of service earns 2% of your final salary as annual pension.
Survivor benefits allow your pension to continue paying to a spouse after your death. Options typically include single life (highest payment, no survivor benefit), or joint-and-survivor at 50%, 75%, or 100% continuation, with corresponding reductions to your benefit.
Monthly pension provides guaranteed lifetime income and may include survivor benefits and cost-of-living adjustments. Lump sum offers flexibility, inheritance potential, and control over investments, but you bear longevity and investment risk.
Pension Benefits
Monthly Benefit
$4,000
Annual Benefit
$48,000
60.0% replacement rate