Pension VS Lump Sum Calculator

Use this calculator to compare the results of getting a lump sum payout instead of a guaranteed monthly pension for life. Find out what the required annual rate of return required would be for your pension plan options. Choose from pensions that are for a single life, Joint and survivor or a life with 10 years certain.

By changing any value in the following form fields, calculated values are immediately provided for displayed output values. Click the view report button to see all of your results.

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Recipient information

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Pension type:*This entry is required.

Pension type

The type of monthly pension to compare. Your choices are as follows:

Pension Payment Types
Single life	Monthly pension payments guaranteed for life the pensioner.
50% Joint and Survivor	Monthly pension payments guaranteed for life the pensioner, plus 50% of the monthly pension benefit for the remaining life of the surviving spouse.
100% Joint and Survivor	Monthly pension payments guaranteed for life the pensioner, plus 100% of the monthly pension benefit for the remaining life of the surviving spouse.
Life with 10 Years Certain	Monthly pension payments guaranteed 10 years or the life the pensioner - whichever is longer.

Current age:*This entry is required.Enter an amount between 20 and 100

Age of death:*This entry is required.Enter an amount between 50 and 100

Spouse's age:

Spouse's age of death:

Lump sum payment

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Lump Sum pension payout:*This entry is required.Enter an amount between $0.00 and $10,000,000.00

Age to receive lump sum payout:*This entry is required.Enter an amount between 50 and 100

Pension

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Monthly pension:*This entry is required.Enter an amount between $0.00 and $1,000,000.00

Age pension begins:*This entry is required.Enter an amount between 50 and 100

Spouse's survivors pension:

Total pension benefit payments:

$0.00

Lump Sum of $0 at age 65 Column Graph: Please use the calculator's report to see detailed calculation results in tabular form.

Lump Sum of $0 at age 65

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Definitions

Pension type

The type of monthly pension to compare. Your choices are as follows:

Pension Payment Types
Single life	Monthly pension payments guaranteed for life the pensioner.
50% Joint and Survivor	Monthly pension payments guaranteed for life the pensioner, plus 50% of the monthly pension benefit for the remaining life of the surviving spouse.
100% Joint and Survivor	Monthly pension payments guaranteed for life the pensioner, plus 100% of the monthly pension benefit for the remaining life of the surviving spouse.
Life with 10 Years Certain	Monthly pension payments guaranteed 10 years or the life the pensioner - whichever is longer.

Monthly pension

The monthly pension paid though the life of the pensioner. Any spousal pension amount is calculated based on amount entered here.

Lump Sum pension payout

The lump sum that you would receive instead of guaranteed monthly pension payments.

Age to receive lump sum payout

This is the age you would receive the lump sum payout.

Current age

This is the current age of the pensioner.

Age pension begins

Age pension begins for the recipient.

Age of death

The age of death is when the primary pensioner dies and any non-spouse pension payments would end.

Spouse's age

Current age of spouse. This is only used for Joint and Survivor pension types.

Spouse's survivors pension

This is only used for Joint and Survivor pension types. The survivors pension is a calculated amount depending on the type of pension that is chosen.

Spouse's age of death

This is the age the spouse dies and any survivors pension would end.

Required rate of return

This is the annual rate of return that would be required on the lump sum amount to match the guaranteed monthly pension payments.

Total pension benefit payments

Total pension payments for the type of pension selected, assuming the pensioner and if applicable their spouse, live to the age(s) entered.