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

Monthly pension

Lump sum offer

Benefit years

Discount rate

Tab to move between fields

Results

Pension PV

$429,432

Lump sum$450,000

PV difference-$20,568

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.

Ad Placeholder