🏖 Pension Calculator
Traditional pensions pay a yearly benefit for life, usually computed as a percentage of your final salary multiplied by each year you worked. Enter those three numbers and this calculator returns the annual — and monthly — benefit the formula produces.
Real plans add wrinkles like vesting periods, early-retirement reductions and cost-of-living adjustments, so treat this as the headline figure and check your plan's handbook for the fine print.
How to use this calculator
Enter your final average salary, years of service and the plan's benefit multiplier to estimate your yearly pension.
- Enter your Final average salary.
- Enter your Years of service.
- Type the Benefit multiplier as a percentage.
- Press Calculate to see the annual and monthly benefit.
Frequently asked questions
How is the pension benefit figured?
Final salary times years of service times the multiplier. With a $90,000 salary, 30 years of service and a 2% multiplier, the annual benefit is $54,000, or $4,500 a month.
What is the replacement ratio row?
The annual benefit as a percentage of your final salary: 60% in the example. It shows how much of your working income the pension replaces.
Does every pension use this formula?
Most traditional defined-benefit plans do, but vesting rules, early-retirement reductions and cost-of-living adjustments vary, so check your plan handbook for the fine print.
Is the benefit paid for life?
Typically yes for the retiree, often with survivor options that reduce the monthly amount. This calculator shows the headline single-life figure.