Pension vs lump sum calculator

Monthly pension ($)

Lump sum offered ($)

Age when payments start

Pension cost-of-living raise (% a year)

Plan to live to age

Return on the lump sum (%)

Return the lump sum must earn5.1%To match the pension to age 88

Pension’s value to you$332,428At 5.0% a year, to 88

Pension pulls ahead atAge 87.8Versus investing the lump sum

Lump sum lasts22.7 yearsPaying yourself the same income

To match $2,000 a month until 88, the $330,000 lump sum would have to earn 5.1% a year. At the 5.0% you entered, the pension is worth more, and the pension pulls ahead if you live past age 87.8.

Free Pension vs lump sum calculator by Killion Labs. Tables, worked examples and assumptions are on the full page.