Pension vs Lump Sum
Enter the pension offer details.
Better option
Lump sum wins by $0
Breakeven age: 0
Pension total income
$0
Lump sum invested value
$0
Difference
$0
Breakeven age
0
Pension monthly
$0
Lump sum monthly withdrawal
$0
Worked example
With the default inputs shown below, this calculator returns the following results:
| Input | Value |
|---|---|
| Lump sum offer ($) | $500,000 |
| Monthly pension payment ($) | $2,500 |
| Your age | 65 |
| Life expectancy | 90 |
| Expected investment return (%) | 5% |
| Result | Value |
|---|---|
| Better option | Lump sum wins by $943,177 |
| Pension total income | $750,000 |
| Lump sum invested value | $1,693,177 |
| Difference | +$943,177 |
| Breakeven age | 82 |
| Pension monthly | $2,500 |
Values shown are produced by this page in your browser; change any input to update them.
How to use the Pension vs Lump Sum
- Lump sum offer ($) — default $500,000
- Monthly pension payment ($) — default $2,500
- Your age — default 65
- Life expectancy — default 90
- Expected investment return (%) — default 5%
- Press Calculate to update the results instantly.