Free Pension Benefit Estimator
Estimate your defined-benefit pension income based on years of service, salary, and benefit multiplier.
years
USD
%
Typically 1-2% per year of service
years
Annual Pension Benefit
$31,875
Monthly Pension$2,656
Income Replacement Ratio37.5 %
Lump Sum Equivalent (Approx)$573,750
Annual Pension Benefit vs Years of Service
Pension Benefit Calculation
Standard Formula
Annual Pension = Years of Service x Multiplier x Final Average Salary
Common Multipliers
Final Average Salary
Usually the average of your highest 3-5 consecutive years of earnings. Some plans use career average instead.
Lump Sum Option
Some plans offer a lump sum payout. A rough equivalent is 15-20x the annual benefit.
Example Calculation
25 years of service, $85,000 final average salary, 1.5% multiplier.
- 01Annual pension = 25 x 1.5% x $85,000 = $31,875
- 02Monthly pension = $31,875 / 12 = $2,656
- 03Replacement ratio = 25 x 1.5% = 37.5%
- 04Lump sum equivalent = $31,875 x 18 = ~$573,750
Frequently Asked Questions
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