Free Pension Calculator - Estimate Your Retirement Income
Estimate your pension value at retirement and calculate your monthly retirement income
Formula & Methodology
This calculator projects the future value of your current pension pot plus ongoing monthly contributions. The estimated monthly income applies the 4% safe withdrawal rule to determine a sustainable retirement payout.
- FV = P(1 + r/n)^(nt) + PMT × [((1 + r/n)^(nt) - 1) / (r/n)]
- Monthly Income = Future Value / (25 × 12)
Worked Example
Using the Pension Estimator: apply the formula above to your input values. For instance, FV = P(1 + r/n)^(nt) + PMT × [((1 + r/n)^(nt) - 1) / (r/n)], then Monthly Income = Future Value / (25 × 12). The tool performs each step instantly and shows the result.
Frequently Asked Questions
How is a pension benefit estimated?
Defined-benefit pensions typically multiply your years of service, a benefit rate, and your final or average salary.
What is a final salary pension?
It bases your payout on your salary near retirement, so pay rises late in your career can boost the benefit.
Should I include other retirement income?
Yes. Combine pension estimates with savings and social security to see whether your total covers retirement needs.