Pension Calculator

Calculate your retirement income and pension benefits. Plan for retirement with accurate projections of your pension balance and monthly payments.

Pension Details

Contributions are fixed, benefits depend on investment returns

Pension Projection

Enter your pension details to calculate retirement income

Retirement Planning Tips

Contribution Strategies

  • • Contribute at least enough to get full employer match
  • • Increase contributions with salary raises
  • • Consider catch-up contributions after age 50
  • • Maximize tax-advantaged accounts first
  • • Review and rebalance portfolio annually

Retirement Income Sources

  • • Employer pension plan
  • • Social Security benefits
  • • Personal retirement savings (401k, IRA)
  • • Investment income and dividends
  • • Part-time work or consulting
  • • Rental property income

How to Use This Calculator

Step-by-Step Guide

  1. 1. Enter your current age and planned retirement age
  2. 2. Input your current annual salary
  3. 3. Select your pension type (defined contribution/benefit)
  4. 4. Enter contribution percentages for you and employer
  5. 5. Add your current pension balance if any
  6. 6. Set expected return and inflation rates
  7. 7. Click "Calculate Pension" to see projections

Understanding Results

  • Monthly Pension: Expected monthly retirement income
  • Replacement Ratio: Pension as % of current salary
  • Total Balance: Projected pension fund value
  • Investment Growth: Earnings from contributions
  • Inflation-Adjusted: Real purchasing power

Frequently Asked Questions

What's a good replacement ratio?

Financial experts generally recommend aiming for 70-80% of your pre-retirement income. This accounts for reduced work-related expenses while maintaining your lifestyle. However, your target depends on your retirement goals, health, and other income sources.

How much should I contribute to my pension?

Contribute at least enough to get your full employer match, as this is essentially free money. Beyond that, aim for 10-15% of your salary total (including employer contributions). Start early and increase contributions gradually to build a substantial retirement fund.

What's the difference between defined contribution and defined benefit?

Defined contribution plans (like 401k) have fixed contributions but variable benefits based on investment performance. Defined benefit plans (traditional pensions) promise fixed benefits based on salary and years of service, with the employer bearing investment risk.

Should I consider inflation in my planning?

Yes, inflation significantly impacts purchasing power over time. A pension that seems adequate today may not cover expenses in 20-30 years. This calculator shows both nominal and inflation-adjusted values to help you understand the real value of your future pension.