Pension Calculator
Estimate your monthly pension benefit based on your plan formula, years of service, and salary. Compare lump sum vs annuity options and see how retirement age affects your payout.
Personal Details
Pension Plan Details
Lump Sum vs. Annuity
Social Security
Pension Strength Score
Your pension is a solid foundation. Supplement with savings to ensure a comfortable retirement.
Monthly Benefit
$4,239
Salary Replacement
40%
Monthly Pension
$4,239
$50,867/year
Salary Replacement
40%
of $124,674
Lifetime Value
$1,712,738
over 26 years
Present Value
$942,455
at 5% discount
Early Retirement Penalty: 15% reduction
Retiring at 62 is 3 years before your plan's normal retirement age of 65. Your benefit is reduced by 5% per year = 15% total. Waiting until 65 would give you the full unreduced benefit.
Pension by Retirement Age
How your monthly benefit changes at each retirement age
Retirement Income Over Time
Pension and Social Security combined income through retirement
Lump Sum vs. Pension Annuity
If you invested the $450,000 lump sum at 6%
Pension Annuity
$1,712,738
lifetime income
Better Option
Lump Sum Invested
$450,000
depleted at age 73
Retirement Income Sources
How your pension fits into your total retirement income
Total
$77,267
Pension
66%$50,867/yr
Social Security
34%$26,400/yr
Retirement Age Comparison
Monthly benefit, annual income, and lifetime value at each age
| Age | Service | Monthly | Annual | Penalty | Lifetime |
|---|---|---|---|---|---|
| 55 | 25 yrs | $1,639 | $19,666 | -50% | $906,815 |
| 56 | 26 yrs | $1,922 | $23,060 | -45% | $1,019,873 |
| 57 | 27 yrs | $2,231 | $26,777 | -40% | $1,134,793 |
| 58 | 28 yrs | $2,570 | $30,835 | -35% | $1,250,910 |
| 59 | 29 yrs | $2,938 | $35,253 | -30% | $1,367,524 |
| 60 | 30 yrs | $3,337 | $40,050 | -25% | $1,483,894 |
| 61 | 31 yrs | $3,771 | $45,247 | -20% | $1,599,238 |
| 62Planned | 32 yrs | $4,239 | $50,867 | -15% | $1,712,732 |
| 63 | 33 yrs | $4,744 | $56,931 | -10% | $1,823,505 |
| 64 | 34 yrs | $5,289 | $63,462 | -5% | $1,930,642 |
| 65Normal | 35 yrs | $5,874 | $70,486 | None | $2,033,177 |
| 66 | 36 yrs | $6,193 | $74,313 | None | $2,028,664 |
| 67 | 37 yrs | $6,524 | $78,286 | None | $2,018,485 |
| 68 | 38 yrs | $6,868 | $82,412 | None | $2,002,404 |
| 69 | 39 yrs | $7,225 | $86,696 | None | $1,980,177 |
| 70 | 40 yrs | $7,595 | $91,142 | None | $1,951,552 |
Year-by-Year Pension Income
Annual pension payments through retirement
| Age | Pension | Social Security | Total | Real Value | Cumulative |
|---|---|---|---|---|---|
| 62 | $50,867 | - | $50,867 | $50,867 | $50,867 |
| 67 | $56,161 | $26,400 | $82,561 | $72,972 | $320,874 |
| 72 | $62,007 | $26,400 | $88,407 | $69,063 | $618,986 |
| 77 | $68,460 | $26,400 | $94,860 | $65,498 | $948,125 |
| 82 | $75,586 | $26,400 | $101,986 | $62,239 | $1,311,521 |
| 87 | $83,453 | $26,400 | $109,853 | $59,254 | $1,712,738 |
Personalized Insights
Actionable recommendations based on your numbers
40% salary replacement
Your pension covers 40% of your final salary. You'll likely need additional savings to maintain your pre-retirement lifestyle. Target 70-80% total replacement.
Working 3 more years adds $1,635/month
Retiring at 65 instead of 62 gives you 35 years of service and $5,874/month vs $4,239/month — a $19,620/year increase.
15% early retirement reduction
Retiring at 62 applies a 15% penalty. Waiting until 65 would give you $5,874/month — $1,635 more per month.
2% COLA protects against inflation
Your pension increases 2% annually. By year 20, your benefit grows from $50,867/year to $75,586/year. This is a valuable feature many private pensions lack.
Pension annuity is the better deal
The $450,000 lump sum invested at 6% would be depleted by age 73. The pension provides $1,712,738 in guaranteed lifetime income — choose the annuity.
Pension present value ($942,455) exceeds lump sum ($450,000)
At a 5% discount rate, your pension's present value is $492,455 more than the lump sum offer. This suggests the annuity is underpriced — a strong case for taking the pension.
Combined pension + SS: $77,267/year
Your pension ($50,867) plus Social Security ($26,400) provides $77,267/year or $6,439/month in guaranteed income. Note: SS doesn't start until age 67.
Related Retirement Calculators
Explore the next planning questions readers usually compare with this calculator.