Calculate your defined benefit pension payout based on years of service, final salary, and your plan's benefit formula.
Pension Details
Enter your pension plan information
💼 Benefit Formula
$
% per year
Typical range: 1.0-2.5%. Federal FERS: 1.1%/yr
📈 Planning Inputs
% per year
%
Annual Pension Benefit
$—
—
Monthly Benefit
$—
Annual Benefit
—
% of Final Salary
—
Lifetime Payout
—
Payout Years
—
Years of Service
—
Final Salary
—
Benefit Multiplier
—
Annual Benefit
—
Monthly Benefit
—
Replacement Ratio
—
Estimated Payout Years
—
Total Nominal Lifetime Payout
—
FAQ
How is a defined benefit pension calculated?
Annual Benefit = Years of Service × Final Avg Salary × Benefit Multiplier %. Example: 30 years × $80,000 × 1.5% = $36,000/year. The multiplier and average salary definition vary by plan.
What is the difference between defined benefit and defined contribution?
A defined benefit (DB) plan promises a fixed monthly payment based on years of service and salary. A defined contribution (DC) plan like a 401(k) depends on how much you save and how investments perform. DB plans shift investment risk to the employer.
What is a pension COLA?
Cost of Living Adjustment (COLA) increases pension payments annually to keep up with inflation. Private pensions rarely include COLA; public employee pensions often include partial COLA. A pension without COLA loses purchasing power over decades.
Should I take lump sum or monthly pension?
A monthly annuity provides lifetime income security. A lump sum gives flexibility but requires self-management. Compare: if the monthly payment × 12 × expected years > lump sum IRR, monthly payments win. Typical break-even for pension decisions is around age 80-83.