ConvertOnlinePension Calculator for Monthly Retirement Income
Report source: https://convertonline.org/calculators/pension-calculator
Model a defined benefit pension using an editable salary and service formula, then review monthly income, lifetime payments, COLA changes, and estimated present value.
Private calculation. Your entries and results stay in this browser and are not uploaded to ConvertOnline.
Rules and data: Educational pension estimate.
Pension Calculator
Estimated first monthly pension
Pension income schedule
| Year | Age or phase | Salary | Starting balance | User contribution | Employer contribution | Withdrawals | Growth | Ending balance |
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Pension Calculator formula
First annual pension = projected pensionable salary × service years at retirement × formula multiplier × payable percentage. Later annual benefits increase by the entered COLA.
Many plans use a multi-year final average salary, early retirement reductions, service caps, survivor factors, or plan-specific lump sum assumptions. Enter the payable percentage supplied by the plan when applicable.
Assumptions and limitations
- Current salary grows at one constant annual rate and stands in for the plan’s pensionable or final average pay definition.
- One year of service is added for each year until retirement with no service cap.
- The payable percentage can approximate an early-retirement or survivor-option adjustment only when the plan supplies that factor.
- Taxes, plan funding status, Social Security offsets, insurer guarantees, and employer-specific rules are excluded.
Sources:
Worked example
Example: a 1.5% salary and service pension formula
A worker retires at 65 with 30 credited service years and $100,000 of pensionable salary. The plan formula multiplier is 1.5% and the selected benefit is payable at 100%.
The estimated first annual pension is $45,000, or $3,750 per month before taxes. The schedule then applies the entered COLA through the planning age.
Frequently asked questions
What salary should I enter?
Use pensionable pay or a final average salary estimate that matches the plan document. Regular salary, bonuses, and overtime may be treated differently.
How do I model a survivor pension?
Enter the percentage of the full benefit payable under the selected option when the plan provides it. Survivor reductions and guarantees are plan specific.
Is present value the same as a plan lump sum?
No. The displayed present value uses your discount rate and schedule. A plan lump sum can use required mortality tables, segment rates, dates, and plan terms.
This calculator provides an estimate for planning and education. Actual returns, rates, plan terms, taxes, fees, and future rules may differ.