Defined Benefit Pension Estimator
Generic estimator: translate an estimated monthly pension at retirement to a lump-sum equivalent using a discount rate — illustrative only.
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Plan math
Simple career-average / final-pay proxy
Annual pension equals final salary × accrual × years of service, capped as a percent of salary. This is a teaching model — real plans use averaging, early retirement factors, and survivor benefits.
Advanced mode
Add a benefit cap (% of final salary) and a COLA for a rough 10-year nominal sum.
Results
Estimated benefit
Annual benefit (illustrative)
LKR 35,420.00
Replacement ratio
38.5%
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Perspective
Employer formulas are more complex than one discount rate
Real pension valuations use mortality, early retirement reductions, and COLAs.
Use this only for intuition and conversation with a professional.
FAQ
Common questions
Why is my employer’s number different?
Plans use legal assumptions and actuarial factors. This is a simplified PV illustration.
What discount rate should I use?
Some people use high-quality bond yields as a rough discount anchor — your planner may prefer another rate.
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