Pension Calculator
Calculate your pension benefit based on years of service, salary, and plan formula.
Pension formula
Monthly benefit
$2,500
per month
Annual benefit
$30,000
Replacement ratio
40%
Lifetime benefit
$600K
Benefit by retirement age
74.25055.687,537.12518.562,50
Retirement options
| Age | Years service | Monthly | Reduction |
|---|---|---|---|
| 55 | 30 | $1,875 | -50% |
| 56 | 31 | $2,131 | -45% |
| 57 | 32 | $2,400 | -40% |
| 58 | 33 | $2,681 | -35% |
| 59 | 34 | $2,975 | -30% |
| 60 | 35 | $3,281 | -25% |
| 61 | 36 | $3,600 | -20% |
| 62 | 37 | $3,931 | -15% |
| 63 | 38 | $4,275 | -10% |
| 64 | 39 | $4,631 | -5% |
| 65 | 40 | $5,000 | 0% |
| 66 | 41 | $5,125 | 0% |
| 67 | 42 | $5,250 | 0% |
| 68 | 43 | $5,375 | 0% |
| 69 | 44 | $5,500 | 0% |
| 70 | 45 | $5,625 | 0% |
How it's calculated
20 × 2% × $75,000
= $30,000 per year
What is a pension?
A pension is a defined benefit retirement plan where the employer promises a specific monthly payment based on your salary and years of service.
Types of pension plans
Defined benefit plans calculate your pension with a formula. Defined contribution plans (like 401K) depend on how much you contribute and invest.
Factors affecting your pension
Main factors are: years of service, final average salary (usually last 3-5 years), plan multiplier, and retirement age.