About the Pension Calculator
A defined-benefit pension pays a guaranteed income based on your salary and years of service. This calculator estimates the annual and monthly benefit from the standard formula, and approximates the lump-sum value if your plan offers a choice.
How it’s calculated
Annual pension = final average salary × years of service × the plan's multiplier. The lump-sum value is the present value of those payments over your expected payout years.
Example calculation
A $80,000 final salary with 30 years of service and a 1.5% multiplier yields a $36,000 annual pension — about $3,000 a month.
Frequently asked questions
Should I take the pension or the lump sum?
It depends on the lump-sum offer versus the guaranteed income, your health, other income, and whether the pension has cost-of-living adjustments. The lump-sum value here helps you compare, but weigh the guarantee too.
Is my pension protected?
Private US pensions are generally backed by the PBGC up to limits; government pensions vary. Ask your plan about funding status and survivor options.
Retirement projections are estimates based on the assumptions you enter and do not guarantee future outcomes. Contribution limits and tax rules change over time — verify current figures and consider speaking with a financial professional.