Pension Calculator
A pension calculator estimates your defined benefit pension payments based on years of service, salary, and your plan's benefit formula. Pensions provide guaranteed lifetime income in retirement.
Common Pension Formulas
Most pensions use a multiplier formula:
Annual Pension = Years of Service × Multiplier × Final Average Salary
| Multiplier | 20 Years Service | 30 Years Service | 35 Years Service | 1.5%30% of salary45% of salary52.5% of salary 2.0%40% of salary60% of salary70% of salary 2.5%50% of salary75% of salary87.5% of salary
Pension Benefit Examples
Final Average Salary: $80,000
Years1.5% Multiplier2.0% Multiplier2.5% Multiplier 20$24,000/year$32,000/year$40,000/year 25$30,000/year$40,000/year$50,000/year 30$36,000/year$48,000/year$60,000/year | 35 | $42,000/year | $56,000/year | $70,000/year |
Pension Calculator Implementation
``javascript
function calculatePension(yearsOfService, finalAvgSalary, multiplier, earlyRetirement = false) {
let basePension = yearsOfService * (multiplier / 100) * finalAvgSalary;
// Early retirement reduction (typically 5-6% per year before normal retirement)
const reduction = earlyRetirement ? 0.05 * 5 : 0; // Assume 5 years early
const adjustedPension = basePension * (1 - reduction);
return {
annualPension: adjustedPension.toFixed(2),
monthlyPension: (adjustedPension / 12).toFixed(2),
replacementRate: ((adjustedPension / finalAvgSalary) * 100).toFixed(1) + '%',
earlyReduction: (reduction * 100).toFixed(0) + '%'
};
}
console.log(calculatePension(30, 80000, 2.0));
// { annualPension: '48000', monthlyPension: '4000', replacementRate: '60%' }
``
Lump Sum vs Annuity
Some pensions offer lump sum buyouts. Compare the lump sum to the present value of lifetime payments using your expected lifespan and discount rate.