Pension Replacement Rate Calculator
What percentage of your salary will you receive when you retire? The replacement rate is your pension divided by your last salary. Enter your monthly salary and the pension you expect, and the calculator shows how much of your income the pension replaces, the monthly drop, and how much is missing to reach a target (for example 70%).
Use the gross salary and gross pension (both are paid 14 times a year, so the percentage is the same monthly or yearly). Don't have a pension estimate? Use the pension estimator. The 70% target is a common reference for keeping your standard of living; adjust it to your situation.
Your replacement rate
The replacement rate is the pension divided by the salary. It shows how much of your working income the pension replaces; the rest is the drop you need to plan for.
Compared with the 70% target
The target pension is the salary times the target rate. The monthly shortfall is how much you would need to top up (for example with a PPR or other savings) to reach the target.
Educational estimate, not financial advice. It compares gross figures; the net replacement rate is usually higher, because the pension pays less income tax and no Social Security contribution.
Video: how to use the calculator
What this calculator does
It divides your estimated monthly pension by your last monthly salary to get the replacement rate, as a percentage. From there it shows the income drop (the difference in euros per month), the share of income you lose and, against a target replacement rate, how much pension you would need and how much is missing per month to get there.
Do not know what pension you will receive?
The replacement rate needs a pension estimate. You can get one from our pension estimator, which estimates the old-age pension from your career-average salary and years of contributions, or from the official Segurança Social Direta simulation. Then bring that figure here to see what percentage of your salary it represents.
What is a good replacement rate?
A common benchmark is to aim for around 70% of your final income, to keep your standard of living without the salary (there are no more Social Security contributions and, as a rule, no work-related costs). It is not a fixed rule: if your home is paid off and your expenses are low you may live well on less; if you want to keep the same lifestyle you may want more. Adjust the target rate to your situation.
Gross, net and the 14 months
The calculator compares gross figures. Because both the salary and the pension are paid 14 times a year, the percentage is the same monthly or yearly. The net replacement rate is usually higher than the gross one, because the pension pays less income tax and no 11% Social Security contribution. To close the gap to your target, a PPR or other savings help top up the pension.
Worked example
With a last salary of €1,500 and an estimated pension of €1,000, the replacement rate is 66.7%: the pension replaces two thirds of the salary and the drop is €500 a month. For a 70% target you would need a €1,050 pension, so €50 a month is missing to top up with savings.
Frequently asked questions
What is the pension replacement rate?
What percentage of my salary will I get in retirement?
What is a good replacement rate?
How can I raise my replacement rate?
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Sources
- Pensions at a Glance (taxas de substituição das pensões) — OCDE
- Pensão de velhice: cálculo e fórmula — Instituto da Segurança Social
- Todos Contam: Portal de educação financeira (planear a reforma) — Banco de Portugal, CMVM e ASF
Author: Thorben Rasmus Idel · Reviewed by: Nahar Geva · Last reviewed: 2026-06-12