Estimate your defined benefit pension payout at retirement. Calculate monthly and annual pension income based on years of service and your plan's multiplier.
$40,000 per year
| Annual Pension Benefit | $40,000 |
| Monthly Pension Benefit | $3,333.33 |
| Salary Replacement Rate | 50.0% |
| Years in Retirement | 20 years |
| Total Lifetime Benefit | $800,000 |
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Annual Pension = Salary × Multiplier% × Years of Service
Example: $80k × 2% × 25 years = $40,000/year
Most defined benefit pensions use: Annual Benefit = Years of Service × Benefit Multiplier × Final/Average Salary. A 2% multiplier with 30 years = 60% of salary.
The multiplier (typically 1-2.5%) is the percentage of salary earned per year of service. Public sector pensions often use 2-2.5%, private sector 1-1.5%.
Final salary uses your last year's pay. Career average uses the average of all years. Final salary is more valuable if salaries grew over time.
Yes, pension income is generally taxable as ordinary income in retirement, though some states offer exemptions for pension income.
Calculations are for educational purposes only. Consult a qualified financial advisor for personalized advice.