Enter your pension assumptions
The page uses one stacked layout, with a responsive field grid inside the form.
Sample scenario for quick checking
| Example Input | Sample Value | Illustrative Output | Sample Result |
|---|---|---|---|
| Annual salary | $78,000 | Employee annual contribution | $6,560 |
| Annual bonus | $4,000 | Employer annual match | $2,460 |
| Contribution rate | 8% | Combined annual funding | $9,020 |
| Employer match | 50% up to 6% | Estimated tax savings | $1,771.20 |
| Tax rate | 27% | Taxable pay after pension | $74,140 |
| Current balance | $25,000 | Projected balance after 25 years* | $626,000+ |
*Projection depends on steady contributions, salary growth, and investment returns. Real plan results can differ materially.
Core formulas behind the calculator
1. Annual gross compensation
Annual Gross = Annual Salary + Annual Bonus
2. Planned employee contribution
Percent Mode = Annual Gross × Employee Rate
Fixed Mode = Fixed Per Pay × Pay Periods
3. Allowed employee contribution
Allowed Limit = Annual Limit + Catch-Up when age is 50 or above.
Actual Employee Contribution = min(Planned Contribution, Remaining Annual Room)
4. Employer match
Matched Pay Basis = Annual Gross × min(Effective Contribution Rate, Match Cap)
Employer Match = Matched Pay Basis × Employer Match Rate
5. Taxable pay impact
Taxable Pay Before Pension = Annual Gross - Other Pre-Tax Deductions
Taxable Pay After Pension = Taxable Pay Before Pension - Employee Contribution
6. Estimated tax savings
Estimated Tax Savings = Employee Contribution × Combined Tax Rate
7. Net annual pay reduction
Net Pay Reduction = Employee Contribution - Estimated Tax Savings
8. Projection formula
Ending Balance = Starting Balance × (1 + Return) + Total Annual Funding
Each future year also adjusts salary by the selected salary growth rate.
Steps for a clean estimate
- Enter annual salary and any pension-eligible bonus income.
- Select the pay frequency used by your payroll cycle.
- Choose percentage mode or fixed deduction mode.
- Enter employer match rate and the match cap percentage.
- Fill in annual limit, catch-up amount, and year-to-date contributions.
- Add estimated tax rates to see approximate tax savings.
- Enter current balance, return, salary growth, and retirement years.
- Press the calculate button to show results above the form.
- Use the CSV or PDF buttons to export the report.
Common questions
1. What does this calculator estimate?
It estimates employee pension deductions, employer match value, annual contribution totals, taxable pay reduction, estimated tax savings, and future retirement balance under chosen assumptions.
2. What is the difference between percentage and fixed deduction modes?
Percentage mode ties your contribution to compensation. Fixed mode deducts the same amount each pay period. The tool converts both methods into annual and per-pay results.
3. How does the employer match calculation work?
The calculator applies your employer match rate only to the eligible share of pay, capped by the plan’s stated match limit. This mirrors common payroll matching rules.
4. Why are tax savings only estimates?
Actual taxes depend on payroll rules, brackets, filing status, location, and plan design. This tool uses simple combined tax percentages to show a planning estimate.
5. How are annual limits applied?
The calculator limits employee contributions to the remaining annual room after year-to-date contributions. It also adds the catch-up amount when your age qualifies.
6. Can I include bonus income and other deductions?
Yes. You can add annual bonus income and other pre-tax deductions per pay period. This helps you compare more realistic payroll scenarios.
7. Why might the retirement projection differ from my statement?
Statements reflect actual market performance, fees, payroll timing, investment elections, and plan rules. This tool uses level assumptions for planning, not guaranteed results.
8. Should I use this for official payroll or tax filing?
No. Use it for education and planning. Final payroll deductions, plan limits, and tax treatment should come from your employer, plan documents, or tax adviser.