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Pension Calculator
Estimate a simple defined-benefit pension from pensionable final salary, service years and accrual rate. Optionally illustrate exchanging part of the annual pension for a lump sum.
How is a defined-benefit pension estimated?
This illustration multiplies pensionable final salary by service years and the annual accrual rate. For example, 50,000 × 30 × 2% estimates 30,000 per year before any scheme-specific adjustments.
Frequently asked questions
How is a defined-benefit pension estimated?
This illustration multiplies pensionable final salary by service years and the annual accrual rate. For example, 50,000 × 30 × 2% estimates 30,000 per year before any scheme-specific adjustments.
Are my pension figures uploaded?
No. All arithmetic runs in this browser. The salary, service and pension assumptions are not uploaded or saved by this tool.
How much pension is 30 years at 2% on a salary of 50,000?
Using the simple defined-benefit formula, 50,000 × 30 × 0.02 equals 30,000 per year before scheme-specific adjustments.
What is a pension commutation factor?
It is a scheme-defined factor used to estimate a cash lump sum in exchange for giving up part of an annual pension. Enter the factor from your official scheme terms; it is not universal.
Does this include pension tax or cost-of-living increases?
No. It does not model tax, indexation, inflation, early or late retirement adjustments, survivor benefits, salary averaging or scheme-specific limits.
Is this suitable for every pension?
No. It illustrates one simplified defined-benefit formula. Defined-contribution pots, state pensions and schemes with different formulas need their own official calculators or provider figures.