Pension Calculator

Estimate pension benefits based on years of service, salary, and multiplier. See survivor benefit impact.

By Konstantin Iakovlev · Updated September 2026 · Source: IRS

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Annual Pension

$42,500.00

Monthly Pension

$3,541.67

Income Replacement

50.0%

Pension Details

Formula25 yrs x 2.0% x salary
Annual Pension$42,500.00
Monthly Pension$3,541.67
With Survivor Option$3,364.58/mo
Survivor Reduction$177.08
Estimated Pension Years (to age 85)23 years
Lifetime Value (no COLA)$977,500.00
Lifetime Value (with COLA)$1,225,910.94

COLA-Adjusted Pension Over Time

Age 62$3,541.67/mo ($42,500.00/yr)
Age 67$3,910.29/mo ($46,923.43/yr)
Age 72$4,317.27/mo ($51,807.26/yr)
Age 77$4,766.62/mo ($57,199.40/yr)
Age 82$5,262.73/mo ($63,152.76/yr)
Age 84$5,475.34/mo ($65,704.14/yr)

Use the Pension Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Estimating a defined-benefit pension comes down to three inputs: your years of service, your final average salary, and the plan's multiplier. Seeing those projections early matters for retirement planning.

The annual benefit is the product of those three numbers. Multiply your years of service by your final average salary, usually the average of your highest-earning 3-5 years, and then by the pension multiplier, expressed as a percentage such as 2.0% or 0.02. If you enter a survivor percentage, the calculator trims your own pension by one-tenth of that share (5% for a 50% option, 7.5% for 75%), a simplified stand-in for the reduction a plan applies to fund a survivor benefit; it does not calculate the survivor's own payment. It also totals your payments from your retirement age to age 85, with and without the COLA you enter.

Watch out for two assumptions that often skew the result. Retiring early can shrink the benefit more than people anticipate, and final average salary may not climb as steeply as current trends suggest. Your employer can also revise the plan's rules. Because every figure here is an estimate, treat it as a planning baseline and bring it to a financial advisor for guidance tailored to your situation.

Example: Public Sector Pension After 30 Years

  1. 1 Input: Years of Service = 30, Final Average Salary = $75,000, Pension Multiplier = 2.0%, Retirement Age = 62, Survivor Benefit = 50%, COLA = 2%.
  2. 2 Annual pension = 30 × $75,000 × 0.02 = $45,000, or $3,750 a month, which replaces 60% of the final average salary.
  3. 3 With the 50% survivor option the calculator trims the pension by 5% (0.50 × 10%): $3,750 × 0.95 = $3,562.50 a month, a reduction of $187.50. Your plan's own survivor factor may differ.
  4. 4 From 62 to 85 is 23 years of payments: $45,000 × 23 = $1,035,000 without a COLA, or about $1,298,023 if the payment rises 2% a year. Taxes are not included.

Source: IRS · Last updated: September 2026

Frequently Asked Questions

How is a pension benefit calculated?
Most defined-benefit pensions use the formula: years of service multiplied by a benefit multiplier (typically 1-2%) multiplied by your final average salary. For example, 30 years at 1.5% with a $80,000 average salary yields $36,000 per year.
Can I collect a pension and Social Security at the same time?
Yes, and since the Social Security Fairness Act took effect there is no longer any reduction for holding a pension from work not covered by Social Security. The Windfall Elimination Provision and the Government Pension Offset were repealed on January 5, 2025, for all benefit months from January 2024 onward.
Should I take a lump sum or monthly pension payments?
Monthly payments provide guaranteed lifetime income. A lump sum gives you control and potential for higher returns, but carries investment risk. Consider your health, other income sources, and comfort managing investments.

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