Formula
Each year of service adds the same percent of final salary:
Pension = final salary × years × accrual percent
This is not a government or employer formula. Plans cap years, use career-average pay, or reduce the benefit for early retirement.
Assumptions
- The accrual percent applies to every year.
- The benefit is a percent of the final yearly salary you type.
Worked example
A $80,000 final salary, 30 years, and 1.5% a year produce a pension of $36,000.00 a year.
Input definitions
- Percent of salary per year
- How much of final salary each year of work adds to the pension.
Limitations
This is an estimate, not a loan offer, tax filing, or investment advice. The currency control changes the symbol only.
Questions
Is this Social Security?
No. It is a simple defined-benefit sketch from the numbers you type.
Does it include a lump sum?
No. The result is a yearly pension, also shown as a month.