How to use the Pension Calculator
The pension calculator estimates annual pension from a defined-benefit scheme.
What you need to enter
- Years of service
- Final or average salary
- Accrual rate (% of salary per year)
- Expected inflation (% / year)
- Years to retirement
The formula
Pension = years of service × final salary × accrual rate. A 1/60 scheme uses an accrual rate of 1.67%.
Worked example
Using the default values in the calculator:
- Years of service: 30
- Final or average salary: 50000
- Accrual rate (% of salary per year): 1.67
- Expected inflation (% / year): 2.5
- Years to retirement: 20
| Annual pension | $25,050.00 |
| Monthly pension | $2,087.50 |
| Share of final salary | 50.1% |
| Worth in today's money at retirement | $15,287.29 |
Tips for better results
- Check your scheme's own accrual rate.
- Consider whether your pension rises with inflation.
Common mistakes to avoid
- Using the wrong salary definition.
- Ignoring early retirement reductions.
Please note: Calculators and guides give general estimates, not financial, tax or investment advice. Real offers depend on your lender, location and personal situation. See our Disclaimer.