Tools · Pension

Pension vs lump sum
calculator.

Your pension is offering a lump-sum buyout. Which is worth more? Enter the amounts and see the break-even age, what you would need to earn on the lump sum to match, and how survivor benefits change the math.

Age 85
How many years your spouse is expected to receive the survivor benefit after you. 0 = no continuation modeled.
BREAK-EVEN
PENSION STREAM
LUMP SUM DCP

Note: pensions carry implicit longevity insurance that a lump sum does not. If you live to 95, the pension wins by a lot. If you die at 70, the lump sum wins by a lot. Pick based on health, family history, and risk tolerance, not just the break-even number. ×DON'T TRUST, VERIFYClaim: Average US life expectancy at age 65 is roughly 18-21 additional years; individual variation is significant based on health and family history.Verify at: SSA period life tables ↗Default life expectancy of 85 in this tool is a common planning baseline; adjust for your situation.

What this tool assumes
  • Pension internal rate of return assumes you live to your life expectancy.
  • Lump sum growth uses the investment return rate you enter.

Not financial advice. Pension buyout decisions often deserve a CFP or CPA review.

Related

→ Public Sector Finance → Pre-Retirement → FIRE Calculator
HOW THIS IS CALCULATED

This tool runs entirely in your browser — no data is sent to any server. All formulas use standard financial math. Verify the methodology or inspect the source code in your browser's dev tools.