Pension Calculator
Estimate an annual and monthly defined-benefit pension payout from final average salary, years of service and accrual rate.
| Years of Service | Annual Pension | Monthly Pension |
|---|---|---|
| 15 | $22,950.00 | $1,912.50 |
| 20 | $30,600.00 | $2,550.00 |
| 25 | $38,250.00 | $3,187.50 |
| 30 | $45,900.00 | $3,825.00 |
| 35 | $53,550.00 | $4,462.50 |
Every extra year of service raises your pension by $1,530.00 a year — this table shows the payout at nearby service lengths.
- Estimated Monthly Pension$3,187.50
Accrual rate and formula vary widely by plan — check your plan's specific benefit formula for an exact figure.
About the Pension Calculator
A defined-benefit pension doesn't work like a savings account you can just check the balance of — it's a formula, usually your final average salary multiplied by your years of service and a plan-specific accrual rate, that determines a guaranteed annual payout rather than a lump sum you own outright. Not knowing that formula is why so many people reach retirement with only a vague sense of what their pension will actually pay.
This calculator is for anyone with access to a traditional pension — many public-sector employees, union workers, and a shrinking but real slice of private-sector employees — who wants to estimate their payout at their current service length, or see how staying a few more years actually moves the number, using the formula their specific plan is built on.
Your salary, years of service and the resulting payout estimate stay in your browser. There's no account required and nothing about your compensation or your pension's value gets sent anywhere, which matters for a number this tied to your employment history.
How it’s calculated
The core formula multiplies three things together: your final average salary (often the average of your highest-earning several years, not just your last paycheck), your total years of service, and the plan's accrual rate — a percentage that represents how much annual pension you earn per year worked. The table below shows how the payout shifts with a handful of years more or less service, holding salary and accrual rate constant.
Frequently asked questions
What is 'final average salary' exactly?
It's typically the average of your highest-earning consecutive years of service — often the final three or five years, though the exact window varies by plan — not simply your salary in your very last year. Check your plan's specific definition, since it directly determines the input to this calculator.
What is an accrual rate and where do I find mine?
It's the percentage of final average salary you earn per year of service, and it's set by your specific pension plan — commonly somewhere around 1-2.5% per year, though plans vary widely. Your plan's summary plan description or benefits office is the authoritative source for your actual rate.
Does working a few extra years really make a meaningful difference to my pension?
Often yes, and for two reasons at once: more years of service directly increases the years-of-service term in the formula, and staying longer frequently also raises your final average salary if you're still receiving raises. The comparison table shows both effects combined for a range of service lengths.
Is a pension the same as a 401(k)?
No — a 401(k) is a defined-contribution account where you own a balance that depends on what was contributed and how it grew; a pension is a defined-benefit promise where the employer guarantees a specific payout formula regardless of how any underlying investments perform. They carry very different risk: with a pension, the employer bears the investment risk.
Can I take my pension as a lump sum instead of monthly payments?
Some plans offer that option, converting the promised income stream into a present-value lump sum using the plan's own actuarial assumptions. Whether that's a better deal than the monthly annuity depends on your own life expectancy assumptions and what return you could realistically earn managing that lump sum yourself.
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