Pension Benefit Estimator Calculator
Pension Benefit Estimator
Estimate your monthly pension benefit based on years of service, final average salary, and your pension plan multiplier percentage.
Formula
Annual Benefit = Final Average Salary x Multiplier % x Years of Service; Reduced Benefit = Annual Benefit x (1 - Early Retirement Reduction %); Monthly Benefit = Reduced Benefit / 12
Frequently Asked Questions
What is a pension benefit multiplier?
A pension benefit multiplier is the percentage of salary you earn for each year of service. Common multipliers range from 1 to 2.5 percent. For example, with a 1.5 percent multiplier and 30 years of service, your pension would be 45 percent of your final average salary.
What is final average salary?
Final average salary is typically the average of your highest consecutive 3 to 5 years of earnings. Some plans use a different averaging period. This figure is a key component in calculating your defined benefit pension.
How does early retirement affect my pension?
Retiring before your plan normal retirement age typically reduces your pension by 3 to 7 percent per year. The reduction compensates for the longer expected payout period.
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