Pension Calculator – Defined Benefit, Defined Contribution & Global Pension Planning
This Pension Calculator helps you evaluate your retirement income from multiple angles: traditional defined benefit pensions, defined contribution savings, income replacement ratios, combined income, and country-style presets inspired by common pension structures around the world.
1. Defined Benefit Pension (DB)
Many public sector and legacy corporate pensions follow a defined benefit formula. A common pattern is:
For example, if your final salary is $60,000, you have 30 years of service, and your multiplier is 2%:
$60,000 × 30 × 0.02 = $36,000 annual pension.
2. Defined Contribution Pension (DC)
In DC systems (401(k), workplace pensions, NPS, superannuation, etc.), your retirement outcome depends on contributions and investment returns. The calculator projects your balance at retirement and converts it into income using a withdrawal rate (for example, 4% per year).
3. Income Replacement Ratio
The income replacement ratio compares your total retirement income to your final salary before retirement. Many planners target 60%–80% replacement, but the right number depends on your lifestyle, debts, and location.
4. Pension + Investments Combined
This mode adds together DB pension income, investment income from your retirement savings, and other sources such as Social Security, state pension, or rental income. It shows your total annual and monthly income and the percentage of your salary it replaces.
5. Global Country Presets
The country presets tab provides starting assumptions for pension-style systems like USA, UK, Canada, India, UAE, Australia, and Pakistan. These presets use simplified multipliers and contribution rates purely for illustration. You can and should adjust all inputs based on your actual plan rules, local laws, and personal situation.
Use this tool regularly as your salary, contributions, and goals change. Even small increases in savings rates or extra years of work can significantly improve your pension and retirement readiness.