Pension Calculator
Calculate your pension savings at retirement and estimate monthly income using the 4% rule.
About this tool
A Pension Calculator is an essential tool for anyone planning to retire, whether through personal savings, employer retirement plans, or a combination of both. It answers the fundamental question: will I have enough money to retire at my target age? By projecting your savings growth and converting that balance into sustainable monthly income using the 4% rule, this calculator takes the uncertainty out of long-term financial planning.
Enter your current age, desired retirement age, existing savings, and how much you can contribute monthly. Specify your expected annual investment return and inflation rate—historical stock market averages of 7% and inflation around 2.5% are good starting points. The calculator then shows your total savings at retirement in both nominal dollars and inflation-adjusted (real) values, plus your estimated monthly income in both formats so you can see what your purchasing power will actually be.
Most retirees discover that the earlier they start and the more consistently they save, the dramatically better their retirement outlook becomes. This calculator helps you test different scenarios: what if I retire at 62 instead of 67? What if I increase my monthly contributions by $100? The results often reveal that small changes made decades in advance compound into substantial differences, making retirement planning feel less overwhelming and more actionable.
Frequently Asked Questions
Code Implementation
def pension_projection(
current_age: int,
retirement_age: int,
current_savings: float,
monthly_contribution: float,
annual_return_pct: float,
inflation_pct: float,
) -> dict:
"""Project pension savings and retirement income."""
years = retirement_age - current_age
monthly_rate = annual_return_pct / 100 / 12
months = years * 12
# Future value of current savings (compound growth)
fv_savings = current_savings * (1 + annual_return_pct / 100) ** years
# Future value of monthly contributions (annuity formula)
if monthly_rate > 0:
fv_contributions = monthly_contribution * (
((1 + monthly_rate) ** months - 1) / monthly_rate
)
else:
fv_contributions = monthly_contribution * months
total_savings = fv_savings + fv_contributions
# Monthly retirement income using the 4% rule
annual_income = total_savings * 0.04
monthly_income = annual_income / 12
# Inflation adjustment (today's dollars)
inflation_factor = (1 + inflation_pct / 100) ** years
real_total = total_savings / inflation_factor
real_monthly_income = monthly_income / inflation_factor
return {
"total_savings": round(total_savings, 2),
"monthly_income_nominal": round(monthly_income, 2),
"total_savings_real": round(real_total, 2),
"monthly_income_real": round(real_monthly_income, 2),
"years_to_retirement": years,
}
result = pension_projection(
current_age=35,
retirement_age=65,
current_savings=50_000,
monthly_contribution=500,
annual_return_pct=7.0,
inflation_pct=3.0,
)
for key, value in result.items():
print(f"{key}: {value:,.2f}" if isinstance(value, float) else f"{key}: {value}")Comments & Feedback
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