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A defined benefit (DB) pension pays a guaranteed monthly income in retirement, calculated from your salary, years of service, and an accrual rate set by your employer. Unlike 401(k) plans, the investment risk is borne by the employer, not the employee.
चरण-दर-चरण मार्गदर्शिका
- 1Annual pension = Final salary × Years of service × Accrual rate
- 2Example: $80,000 salary × 25 years × 1.5% = $30,000/year
- 3Monthly pension = Annual pension / 12
- 4Replacement rate = Annual pension / Pre-retirement salary
- 5Most advisors recommend replacing 70–80% of pre-retirement income
हल किए गए उदाहरण
इनपुट
$80,000 salary, 30 years, 2% accrual
परिणाम
$48,000/year ($4,000/month)
100% replacement if salary unchanged
इनपुट
$60,000 salary, 20 years, 1.5% accrual
परिणाम
$18,000/year ($1,500/month)
30% replacement rate — supplement needed