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.
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. verify×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.
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.