Salary used to calculate the pension.
Pension earned per year of service.
Total pensionable service.
Annual Pension
$27,000
Monthly Pension
$2,250
Income Replacement Ratio
45.0%
Estimate only — not financial advice; lender terms, fees, and taxes vary. Read the full disclaimer ↓
How the annual pension builds up for each completed year of service, using the same final salary and accrual rate. The replacement ratio is the pension as a share of final salary.
| Years of service | Annual pension | Monthly pension | Replacement ratio |
|---|---|---|---|
| 1 | $900 | $75 | 1.5% |
| 2 | $1,800 | $150 | 3.0% |
| 3 | $2,700 | $225 | 4.5% |
| 4 | $3,600 | $300 | 6.0% |
| 5 | $4,500 | $375 | 7.5% |
| 6 | $5,400 | $450 | 9.0% |
| 7 | $6,300 | $525 | 10.5% |
| 8 | $7,200 | $600 | 12.0% |
| 9 | $8,100 | $675 | 13.5% |
| 10 | $9,000 | $750 | 15.0% |
| 11 | $9,900 | $825 | 16.5% |
| 12 | $10,800 | $900 | 18.0% |
| 13 | $11,700 | $975 | 19.5% |
| 14 | $12,600 | $1,050 | 21.0% |
| 15 | $13,500 | $1,125 | 22.5% |
| 16 | $14,400 | $1,200 | 24.0% |
| 17 | $15,300 | $1,275 | 25.5% |
| 18 | $16,200 | $1,350 | 27.0% |
| 19 | $17,100 | $1,425 | 28.5% |
| 20 | $18,000 | $1,500 | 30.0% |
| 21 | $18,900 | $1,575 | 31.5% |
| 22 | $19,800 | $1,650 | 33.0% |
| 23 | $20,700 | $1,725 | 34.5% |
| 24 | $21,600 | $1,800 | 36.0% |
| 25 | $22,500 | $1,875 | 37.5% |
| 26 | $23,400 | $1,950 | 39.0% |
| 27 | $24,300 | $2,025 | 40.5% |
| 28 | $25,200 | $2,100 | 42.0% |
| 29 | $26,100 | $2,175 | 43.5% |
| 30 | $27,000 | $2,250 | 45.0% |
Defined-benefit pensions multiply a per-year accrual rate by years of service and a salary measure.
$60,000 final salary, 1.5% accrual, 30 years of service.
Final Salary
$60,000
Accrual x Years
45%
Annual Pension
$27,000
Replacement Ratio
45%
A 1.5% accrual over 30 years replaces 45% of final salary, giving a $27,000 annual pension. Combined with other savings, this funds retirement.
This calculator estimates the income from a defined-benefit pension, the type that promises a set annual amount based on your salary and how long you worked, rather than on investment performance. It shows the annual and monthly pension and what share of your final salary it replaces.
It is useful for employees in salary-based pension schemes who want to picture their retirement income, and for anyone weighing a job with such a scheme or deciding how much extra to save on top.
The core formula multiplies three things: your salary, the accrual rate, and your years of service. The accrual rate is the slice of salary you earn as pension for each year worked, so a 1.5% rate over 30 years builds up to 45% of salary.
In figures, a $60,000 final salary with a 1.5% accrual over 30 years gives $60,000 times 0.015 times 30, which is $27,000 a year. Both a higher accrual rate and more years of service lift the pension, and the two combine multiplicatively.
The replacement ratio expresses the pension as a percentage of your final salary, which is an intuitive way to judge whether it will be enough. A 45% ratio means the pension alone replaces under half your working income.
Most planners suggest aiming for around 70 to 80% of pre-retirement income from all sources combined. So a defined-benefit pension often forms a solid base that you supplement with personal savings, investments, or a state pension.
Assuming the pension alone will be enough is a frequent error. Because the replacement ratio is often well below 100%, planning for additional income sources is usually essential to maintain your lifestyle.
Another is overlooking early-retirement reductions, which can cut the pension if you start it before the scheme’s normal age. Treating the figure as after tax, when pensions are generally taxable, can also overstate your spendable income.
Staying longer in a generous scheme can be valuable, since each extra year of service directly raises the pension. If you are weighing a job change, factor the pension into the total package, not just the salary.
Check whether your scheme is based on final salary or career average, and whether pensions increase with inflation once in payment, as these details shape the real value of your income. Topping up with separate savings helps close the gap to your target replacement ratio.
This calculator uses a single salary figure and a constant accrual rate, and shows the unreduced starting pension. It does not model career-average revaluation, early-retirement reductions, scheme-specific caps, or inflation increases after the pension begins.
It also excludes tax and any other retirement income. Pension schemes differ widely, so treat the result as a general estimate and confirm your exact entitlement with your plan administrator.
Many planners aim for 70-80% of pre-retirement income from all sources combined. A defined-benefit pension covering part of that, topped up by personal savings and any state pension, helps reach the target.
Final-salary schemes base the pension on your pay near retirement; career-average schemes use the average of your earnings across your career, usually revalued for inflation. This calculator uses the single salary figure you enter.
It is the fraction of your salary you earn as annual pension for each year of service, often expressed as a percentage or a fraction like 1/60. A 1.5% accrual over 30 years builds to 45% of your salary as a yearly pension.
A defined-benefit pension promises a set income based on salary and service, with the employer bearing the investment risk. A defined-contribution pension instead builds a pot from contributions and investment returns, and the final income depends on that pot. This tool models the defined-benefit type.
No. Many schemes reduce the pension if you start drawing it before the scheme’s normal retirement age, to account for paying out over more years. This calculator shows the unreduced figure, so confirm any reduction with your scheme.
Many schemes increase pensions in payment to keep pace with inflation, but the rules vary and some cap the increase. This calculator shows the starting pension and does not model later indexation.
In most places pension income is taxable like other income. The figures here are before tax, so your spendable amount will be lower depending on your tax situation.
Figures on this page are checked against primary, authoritative sources. Links open in a new tab.
Investment disclaimer
Returns are assumptions, not guarantees. Actual results may vary because of market performance, taxes, fees, inflation, and timing. This is an educational projection, not investment advice.
Built and maintained by Calculator Matters, an independent calculator project. Method checked against published formulas and primary sources · Last reviewed 3 June 2026 · How we calculate · Found an error? corrections@calculatormatters.com