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Pension vs. Lump Sum Payout Calculator

Use this calculator to compare the results of getting a lump sum payout instead of a guaranteed monthly pension for life. Find out what the required annual rate of return required would be for your pension plan options. Choose from pensions that are for a single life, Joint and survivor or a life with 10 years certain.

Pension vs. Lump Sum Payout Calculator Definitions

Pension type
The type of monthly pension to compare. Your choices are as follows:
Pension Payment Types
Single lifeMonthly pension payments guaranteed for life the pensioner.
50% Joint and SurvivorMonthly pension payments guaranteed for life the pensioner, plus 50% of the monthly pension benefit for the remaining life of the surviving spouse.
100% Joint and SurvivorMonthly pension payments guaranteed for life the pensioner, plus 100% of the monthly pension benefit for the remaining life of the surviving spouse.
Life with 10 Years CertainMonthly pension payments guaranteed 10 years or the life the pensioner - whichever is longer.
Monthly pension
The monthly pension paid though the life of the pensioner. Any spousal pension amount is calculated based on amount entered here.
Lump Sum pension payout
The lump sum that you would receive instead of guaranteed monthly pension payments.
Age to receive lump sum payout
This is the age you would receive the lump sum payout.
Current age
This is the current age of the pensioner.
Age pension begins
Age pension begins for the recipient.
Age of death
The age of death is when the primary pensioner dies and any non-spouse pension payments would end.
Spouse's age
Current age of spouse. This is only used for Joint and Survivor pension types.
Spouse's survivors pension
This is only used for Joint and Survivor pension types. The survivors pension is a calculated amount depending on the type of pension that is chosen.
Spouse's age of death
This is the age the spouse dies and any survivors pension would end.
Required rate of return
This is the annual rate of return that would be required on the lump sum amount to match the guaranteed monthly pension payments.
Total pension benefit payments
Total pension payments for the type of pension selected, assuming the pensioner and if applicable their spouse, live to the age(s) entered.