Pension Income Calculator
Estimate your defined-benefit pension monthly payment using a typical formula: years of service × multiplier × final salary.
Inputs
Typical: 1.5-2.5% for state/federal, lower for corporate
Monthly pension
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Annual pension (year 1)
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Income replacement rate
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Annual pension after 20 yr COLA
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Cumulative payments over 20 yr
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About Pension Income Calculator
How pensions work
A defined-benefit plan promises a specific monthly payment for life. Formula is usually Years × Multiplier × Final-average-salary. Less than 15% of US private-sector workers still have one; ~80% of public-sector workers do.
Lump sum vs annuity
Most plans offer a lump sum option at retirement. To compare: divide annual pension by lump sum to get implicit yield. If yield > 6-7%, the annuity is usually better (longevity insurance).
Pension survivor options
Single-life pays more but ends at your death. Joint-and-survivor (50%, 75%, 100%) continues to spouse. The "cost" of survivor benefit is typically 5-15% reduction in monthly payment.