Pension Calculator
Estimate your defined benefit pension income. Enter your final average salary, years of service, and your plan multiplier to calculate your expected annual and monthly pension payments, along with your salary replacement rate.
Pension Calculator
FAQ
How is a defined benefit pension calculated?
A defined benefit pension is typically calculated as: Final Average Salary x Years of Service x Benefit Multiplier. For example, with a $70,000 salary, 25 years of service, and a 2% multiplier, you would receive $35,000 per year.
What is a pension multiplier?
The pension multiplier (or benefit factor) is a percentage applied per year of service. It typically ranges from 1% to 2.5% depending on your employer and pension plan. A higher multiplier means a larger pension benefit for each year worked.
What is a good salary replacement rate?
Financial planners often recommend replacing 70-80% of pre-retirement income. With a 2% multiplier and 30 years of service, your pension alone would replace 60% of your salary, which can be supplemented with Social Security and personal savings.