Pension Calculator
Calculate pension benefits and retirement income from defined benefit plans. Estimate monthly pension payments, survivor benefits, and post-retirement income with inflation adjustment.
Pension Information
Your current age in years
Planned retirement age
Current total pension/retirement savings
How much you contribute per month
Expected investment return rate (7% is typical)
Expected life expectancy (85 is typical)
Pension Projection
How to Use the Pension Calculator
Enter your current age, retirement age, current pension balance, and monthly contributions. The calculator projects your pension at retirement using compound interest and provides sustainable monthly income using the 4% withdrawal rule.
Understanding Your Results
- Total Savings: Your projected pension balance at retirement age
- Monthly Income: Sustainable monthly withdrawal based on 4% annual rule
- Total Contributions: Sum of all your contributions over the years
- Years of Income: Expected duration from retirement to life expectancy
The 4% Withdrawal Rule
The 4% rule is a retirement planning guideline that suggests you can safely withdraw 4% of your initial retirement savings each year, adjusted for inflation, without running out of money for at least 30 years. This rule is based on historical market returns and inflation rates.
Tips for Better Retirement Planning
- Start Early: Time is your best ally - compound interest works wonders
- Maximize Employer Match: Always contribute enough to get full employer match
- Increase Contributions: Try to increase by 1% annually
- Diversify: Don't put all eggs in one basket - mix stocks, bonds, real estate
- Review Regularly: Reassess your plan every year or after major life events