Pension Calculator for Retirement

Solid retirement planning requires understanding what income you can count on. If you're entitled to a pension, you should research how much you may receive, as it's a critical building block for your financial future. 

Empower's Pension Calculator helps estimate your monthly income in retirement based on real or hypothetical details you provide. 

Not sure how pensions work? Learn what a pension is and how it fits into your retirement plans before putting our pension calculator to use.

How the pension calculator works

To estimate your pension benefit at retirement and monthly benefit payout, enter data such as your salary, years of service, and details about your pension plan. You'll need to know your plan type, for example. 

Looking for more ways to prepare for your financial future? Explore Empower's retirement planning resources.

Factors that affect your pension amount

Numerous variables can influence your total and monthly pension benefit in retirement, including:

• Years of service. The longer you work for an employer with a pension benefit, the higher the benefit you might qualify for.
• Salary. Pension amounts may be calculated based in part on your average salary over time, with higher pay leading to increased benefits.
• Pension plan structure and contributions. Employer contributions and plan formulas impact your benefits, and these can vary.
• Inflation and cost-of-living adjustments. Some pensions have built-in adjustments to account for rising costs year-over-year.

Comparing pension plans and other retirement options

Pensions work differently from retirement savings plans, such as 401(k)s. Pensions are typically employer-funded and offer predictable monthly income. Options such as 401(k)s require individual contributions and depend on investment performance for growth.

Fortunately, you can include both in your retirement planning. For example, you might plan for your pension to cover essential living expenses while your 401(k) savings add flexibility and additional financial stability in later years. 

Take the next step

Understanding your pension and how it might help pay for retirement helps in planning your financial future. Use our pension calculator to get a personalized estimate based on your details. You can also use it to see how hypothetical pension scenarios might work in retirement.
Looking for information about when to retire? We've got guidance. 

FAQ

How do I calculate my pension amount?

Your pension benefit is based on factors such as your salary, years of service, and plan type. Our calculator is a convenient way to estimate pension benefits based on those details. Just enter your information, and we do the calculations for you. 

How much is a $30,000 pension worth per month?

That depends on how the $30,000 is paid out - via a lump sum or a monthly benefit. It also depends on your age, plan structure, when you retire, and how long you live in retirement. Use our calculator to explore various scenarios to understand potential monthly pension benefit amounts. 

How much a month is a good pension?

A good monthly pension benefit is subjective. It depends on your lifestyle, expenses, whether you have other income sources, and your financial goals in retirement. Many people aim to have their pension cover their essential expenses in retirement.

What's better, a pension or a 401(k)?

Each has its own advantages. Pensions tend to provide a reliable monthly income, but 401(k)s offer more control and, potentially, more flexibility in managing your funds. You may want to diversify your future retirement income and have both.