fincalculator
Pension Calculator
Use this free Pension Calculator to estimate your future pension income benefits. Simple, accurate, and easy to use for retirement planning.
The Pension Calculator estimates your future defined benefit pension income. Pension plans typically calculate retirement income based on a formula involving your years of service, final average salary, and an accrual rate.
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INPUT VALUES
Final Average Salary80000
Years of Service25
Accrual Rate (%)2
Annual COLA (%)0
Retirement Age65
Life Expectancy85
Discount Rate for PV (%)5
When to Use This Calculator
Use this calculator to:
- Estimate Retirement Income: See how much guaranteed income you can expect from your employer-sponsored pension.
- Value Your Pension: Understand the lump-sum present value of your future pension payments.
Example Scenario
Example Scenario:
- Final Average Salary: $80,000
- Years of Service: 25
- Accrual Rate: 2.0%
Calculations:
- Annual Pension: $80,000 × 25 × 0.02 = $40,000/year.
- Monthly Pension: $40,000 / 12 = $3,333.33/month.