Free Pension Calculator
Estimate your pension benefit based on years of service, final average salary, and your plan multiplier.
USD
years
%
Annual Pension Benefit
$37,500
Monthly Pension Benefit$3,125.00
Income Replacement Ratio50.0%
Annual Pension Benefit vs Years of Service
How Pension Benefits Are Calculated
Most defined-benefit pensions use this formula:
Annual Benefit = Final Salary × Years of Service × Multiplier
The multiplier is typically 1.5% to 2.5% per year of service. A 2% multiplier with 25 years gives 50% income replacement.
Example Calculation
$75,000 salary, 25 years of service, 2% multiplier.
- 01Annual pension = $75,000 × 25 × 2% = $37,500
- 02Monthly pension = $37,500 / 12 = $3,125
- 03Replacement ratio = $37,500 / $75,000 = 50%
Frequently Asked Questions
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