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Pension Calculator

Enter your years of service, final average salary and benefit multiplier to estimate your defined-benefit pension payout.

Your pension formula

yrs
$
%/yr

Check your plan document for the exact multiplier and how "final average salary" is defined (often the average of your highest 3-5 years) — both vary a lot between plans.

Estimated annual pension
$40,000.00
Monthly benefit
$3,333.33
Income replacement
50%

Most defined-benefit formulas follow this years × salary × multiplier pattern, but cost-of-living adjustments, early retirement reductions and survivor benefit elections can change your actual payout.

A worked example

With 25 years of service, a $80,000 final average salary and a 2% per-year multiplier, the formula gives $40,000 a year — $3,333 a month — which is exactly 50% income replacement, a commonly cited benchmark for this combination of years and multiplier.

Frequently asked questions

What is a typical benefit multiplier?

Many public-sector pensions use something in the 1.5% to 2.5% per year of service range, though plans vary considerably. Your plan administrator or benefits statement will have the exact figure for your specific plan.

What counts as 'final average salary'?

Most plans average your highest-earning consecutive years — often the final 3 or 5 years of service, sometimes the highest 3 or 5 out of your whole career. Check your specific plan document, since this detail meaningfully changes the result.

Why is income replacement ratio a useful number?

It expresses your pension as a percentage of your final salary, which is an easier way to judge whether it — combined with savings and Social Security — will realistically cover your retirement spending, compared to looking at a raw dollar figure alone.

Does this account for early retirement reductions?

No — many pension plans reduce the benefit if you retire before the plan's normal retirement age, sometimes by several percentage points per year early. Check your specific plan rules if you're considering retiring before full eligibility.

This calculator provides estimates for general informational purposes only and is not financial advice. Actual pension calculations depend entirely on your specific plan's rules — confirm with your plan administrator before making decisions.