Estimate your pension, compare it to a lump-sum offer and see its present value.
Pension = final average salary × years of service × accrual %. Check your plan document for its actual formula and early-retirement reductions.
Please do not make financial decisions based on these results.
What is the Pension Calculator?
A pension calculator estimates the yearly income from a defined-benefit plan using years of service, final average salary and an accrual rate, and compares it with a lump-sum offer.
Where the Pension Calculator fits
Estimate your pension, compare it to a lump-sum offer and see its present value. The main figure it returns is the Annual pension, worked out from the values you enter.
It belongs with the other retirement tools. If you are comparing options or checking a result from another angle, try the Social Security Calculator, Annuity Calculator or the IRA Calculator.
How to use the Pension Calculator
- Enter your numbers. The inputs are Years of service, Final average salary ($), Pension accrual (% of salary per year of service), Age when payments start, Expected lifespan (age), Discount / return rate (% per year). Use today’s balances and your real contribution amounts, then test a more cautious return. Fields marked optional can stay at zero.
- Read the result. The highlighted box gives the Annual pension, and the cards below show Monthly pension, Replacement of final salary, Total payments to age 90. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the Pension Calculator using the default values shown in the calculator above:
Inputs
| Years of service | 30 |
|---|---|
| Final average salary ($) | 85,000 |
| Pension accrual (% of salary per year of service) | 2 |
| Age when payments start | 62 |
| Expected lifespan (age) | 90 |
| Discount / return rate (% per year) | 5 |
Results
| Annual pension | $51,000.00 |
|---|---|
| Monthly pension | $4,250.00 |
| Replacement of final salary | 60% |
| Total payments to age 90 | $1,428,000.00 |
| Present value of the pension | $778,567.92 |
With these inputs the calculator returns Annual pension: $51,000.00. Change any value in the calculator to see how the result moves.
What the results tell you
The results panel of the Pension Calculator reports Annual pension, monthly pension, replacement of final salary, total payments to age 90 and present value of the pension. Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Tips for better results
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. Retirement results depend on returns, inflation and contribution limits that change over time. They are projections, not promises. It is for information, not financial, tax or legal advice.
Frequently asked questions
Pension or lump sum?
Compare the return you would need to earn on the lump sum to match the pension.
Should I take the pension or the lump sum?
The lump sum gives flexibility and can be inherited. The pension gives guaranteed income. The tool shows the return needed to match the pension.
How much should I save for retirement?
Many planners suggest saving 10% to 15% of income, including employer match, starting early. The retirement calculator shows the monthly amount you need for your own goal.
When should I claim Social Security?
Claiming at 62 reduces your benefit permanently, while waiting until 70 increases it. The best age depends on your health, other income and spouse. The Social Security Calculator compares the options.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
Related retirement calculators
- Social Security Calculator
- Annuity Calculator
- IRA Calculator
- Rule of 72 Calculator
- Present Value of Annuity Calculator
- Roth IRA Calculator
- Retirement Withdrawal Calculator
- Early Retirement Calculator
- Immediate Annuity Calculator
- Future Value of Annuity Calculator
- Growing Annuity Calculator
- Variable Annuity Calculator