Pension Calculator
Understanding Pensions
Pensions provide guaranteed retirement income based on salary and years of service. The formula typically multiplies final average salary by years of service and a multiplier (often 1.5-2%).
Key Terms
- Multiplier: Percentage per year of service
- Final Average Salary: Highest earning years
- Vesting: Years needed for full benefits
💡 Tips
- Pensions provide guaranteed income
- Consider lump-sum vs. annuity options
- Vesting schedules affect benefits
- Survivor benefits may be available