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Pension Calculator

Compare lump sum vs monthly pension, single life vs joint & survivor options, and see which choice makes the most financial sense for your retirement.

Pension Inputs

PENSION DETAILS

LIFE EXPECTANCY

KEY ASSUMPTIONS

Pension Comparison Results

Lump Sum Option
$0
Total lifetime value (with investment)
Monthly Pension Option
$0
Total lifetime income
Break-Even Point
— years
Joint & Survivor Option
Monthly payment would typically be reduced (e.g. 75% or 50% survivor benefit). Total lifetime value depends on both life expectancies.

Cumulative Income Over Time

Pension Decision Guide

Lump Sum vs Monthly Pension

Lump Sum gives you flexibility and control. You can invest it yourself, but you bear the investment risk and longevity risk.

Monthly Pension provides guaranteed income for life (and often for your spouse). It removes market risk but usually has no COLA and limited flexibility.

Key Factors to Consider

  • Health & Longevity: If you expect to live a long time, monthly pension is often better.
  • Investment Skills: Can you responsibly manage a large lump sum?
  • Spouse Protection: Joint & Survivor options reduce your monthly payment but protect your spouse.
  • Inflation Protection: Does your pension have a COLA (Cost of Living Adjustment)?
  • Break-Even Analysis: How many years until the pension payments exceed what you could earn from investing the lump sum?

How This Calculator Works

Lump Sum Total Value = Future value of investing the lump sum at your assumed return rate until life expectancy.

Pension Total Value = Sum of all monthly pension payments (with COLA increases) from retirement until life expectancy.