How to use the pension calculator
- Enter your years of service under the plan.
- Enter your final average salary (often a 3- or 5-year average).
- Enter the plan accrual rate - the percent of salary earned per year of service.
- Enter your retirement age for the lifetime total estimate.
- Read the annual and monthly pension and the share of salary it replaces.
Worked example
With 25 years of service, a $70,000 final salary and a 1.5% accrual rate, the annual pension is $26,250 (25 x 1.5% x 70,000), about $2,188 a month, replacing 37.5% of salary.
The formula
Annual = Years x Accrual rate x Final salary
Monthly = Annual / 12
Replacement = Annual / Final salary
Accrual rates vary: public plans often use 2% to 3%, while many private plans use 1% to 1.5%. Some plans cap the salary or years counted, and cost-of-living adjustments after retirement are not included here.