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Pension Amount Calculator

Work out pension amount instantly with clear inputs, formula shown and shareable results.

About Pension Amount Calculator

A defined benefit pension accrues a fraction of final salary for each year of service. With a 1.8% accrual rate, thirty years of service replaces just over half of final pay — the standard measure being the replacement ratio.

Formula

Final salary pension

Pension = final salary × accrual rate × years of service

Worked example

With the default values below, Pension Amount Calculator returns Annual Pension of $972,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Final Annual Salaryminimum 0
1,800,000
Years Of Serviceaccepts 1–45
30
Accrual Rate Per Year Of Serviceaccepts 0.5–3 %
1.8 %

Results

Annual Pension
$972,000.00
Monthly Pension
$81,000.00
Replacement Ratio Of Final Salary
54.00%
Pension Earned Per Year Of Service
$32,400.00

Step by step

  1. 1Values used
  2. 2Final salary pension
  3. 3Annual Pension= 972,000.00
  4. 4Monthly Pension= 81,000.00
  5. 5Replacement Ratio Of Final Salary= 54.00
  6. 6Pension Earned Per Year Of Service= 32,400.00

Assumptions and limits

  • The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or fees or charges into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.

Frequently Asked Questions

What replacement ratio is adequate?

Around 60-70% of final salary is a common target, since work-related costs and savings contributions stop at retirement.

Is the pension indexed?

Many schemes index in payment, which is worth a great deal over a long retirement — check the rules of yours.

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