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If you have a pension plan (also called a defined benefit plan) through your employer, it’s helpful to figure out your strategy for how it fits into retirement income planning. Here are some tips.

What kind of retirement income is a pension?

A pension is a type of guaranteed retirement income that provides you the same amount, month after month, for however long your retirement lasts. (Annuities and Social Security are two other examples of guaranteed income sources.) Guaranteed retirement income is typically not tied to the market (so doesn’t move up or down). Many people typically budget guaranteed retirement income sources to pay for fixed expenses such as utilities or housing.

Many retirement income plans include a mix of guaranteed retirement income and non-guaranteed retirement income. Non-guaranteed retirement income typically comes from accounts such as 401(k)s, IRAs, and traditional savings. Because those are tied to the market, they may still have growth potential. However, the amount provided by them in retirement may fluctuate, which is why many people use non-guaranteed retirement income to help pay for the extras—travel, for example—not covered by guaranteed retirement income.

How much will I get from my pension?

It depends, and every employer calculates a pension payout differently.

First, you must be eligible, and that happens when you’re vested. What’s vested mean? That’s typically being employed a certain number of years, and it varies from company to company.

Next is your employer’s pension payout formula; these vary, too. The payout formula is a combination of length of service, salary, and age or date you choose to receive your first payout, or the benefit start date. And, your payout amount will change from year to you as you accrue more years of service and, perhaps, have salary changes. (You can ask your HR department or pension provider for more details.)

Once you start to reach your eligibility date, you can get some estimates on what your payout might be. (See below for a how-to on generating an estimate if 91���� is your pension provider.) Then, you typically have to choose the type of pension payout you wish to receive.

When can I start getting my pension?

After you’ve vested, you’re generally eligible for defined benefit plan payouts after age 62 or 65, but every plan has different limits and options.

How do I use a pension with other retirement income I have?

Each of your retirement savings may have its own age or date at which you’re eligible for a distribution or payout. So, for example, you may be eligible for withdrawals at one age from your pension and another from your 401(k). Check with your financial professional or human resources department for more information.

How you choose to combine and use all your sources of retirement income, including your pension, is up to you. Once you determine your budget, including fixed and flexible expenses, then you can decide how you want to put your pension to work during retirement.

There’s one exception to that rule of thumb about retirement income payouts, and that’s Social Security. If your employer wasn’t required to withhold Social Security taxes, your pension may be reduced. In general, that list of employers includes the federal civil service and some state or local governments. Your financial professional or human resources department can help you determine any impacts.