Pension vs Lump Sum Calculator
Pension vs Lump Sum
With Survivor Benefit
Formula
Break-Even = Lump Sum / Annual Pension; Total Pension = Monthly × 12 × Years × COLA adjustments
Frequently Asked Questions
Should I take the pension or lump sum?
It depends on your life expectancy, investment ability, need for flexibility, and desire to leave an inheritance. The pension provides guaranteed income for life, while the lump sum offers flexibility and potential inheritance value.
What is a break-even point?
The break-even point is the age at which total pension payments equal the lump sum amount. If you live beyond this age, the pension was the better financial choice. Before this age, the lump sum would have been better.
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