Pension Calculator
Estimate your pension from a typical formula — years of service × a benefit multiplier × your final average salary — and see how much of your income it replaces.
Where you land
\ud83c\udf34 Plan retirement income
Learn moreHow pensions are calculated
Most defined-benefit pensions use a formula: years of service × a multiplier × final average salary. A 1.5–2% multiplier is common. Thirty years at 1.5% replaces about 45% of salary; at 2% it’s 60%. Add Social Security and personal savings to reach the 70–80% of pre-retirement income most planners target. Check whether your plan adjusts for inflation.
How it’s calculated & sources
Annual pension = final average salary × years of service × multiplier. Replacement ratio = pension ÷ final salary. Compared to the 70–80% retirement-income target.
Benchmark: the 70–80% income-replacement target for retirement; typical pension multipliers run ~1.5–2% per year of service.
Results update as you type and are general estimates, not personalized advice. Verify with a professional.
Worked example
A $80,000 final salary, 30 years of service and a 1.5% multiplier gives $80,000 × 30 × 1.5% = $36,000 a year (~$3,000/month), replacing 45% of salary.
Frequently asked questions
What is a pension multiplier?
The percent of salary you earn per year of service — often 1.5–2%. Higher multipliers mean a larger pension.
Is a pension enough to retire on?
Usually not alone — most replace 40–60% of salary. Combine it with Social Security and savings to reach 70–80%.
Does the pension keep up with inflation?
Only if your plan has a cost-of-living adjustment (COLA). Many private pensions don’t, so the real value erodes over time.