Pension Calculator
Estimate your monthly pension based on salary, years of service, and pension factor percentage.
Estimated Monthly Pension
Defined Benefit Pension is calculated using:
Annual Pension = Final Salary × Years of Service × Pension Factor
Monthly Pension = Annual Pension / 12
Typical pension factors:
- Government/public sector: 1.5%–2.5% per year
- Private sector: 1%–2% per year
- Military: 2%–2.5% per year
Example: $60,000 salary × 25 years × 2% = $30,000/year = $2,500/month
Things that affect your pension:
- Some plans use average of highest 3–5 years rather than final salary
- Early retirement may reduce benefits by 5–7% per year before normal retirement age
- Cost-of-living adjustments (COLA) may increase pension over time