Pension vs Lump Sum
Present value of a pension stream compared to a lump-sum offer using a discount rate.
Financial Disclaimer
This calculator is for educational purposes only and does not constitute financial advice. Results are estimates based on the inputs provided. Consult a qualified financial advisor before making investment or financial planning decisions.
Inputs
$
$
Results
Pension PV
$429,432.00
Lump sum$450,000.00
PV difference-$20,568.00
Higher PVLump sum higher PV
How to Use This Calculator
- Enter your monthly pension payment amount.
- Enter the lump sum payout offer from your pension plan.
- Set the number of years to project benefits (e.g., 25 years for a typical retirement period).
- Enter a discount rate reflecting your investment return or cost of capital.
- Review the present value (PV) of both options — whichever is higher is generally the better financial choice, though personal factors also matter.
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