Compare a pension lump sum against annuity income options.
The comparison depends heavily on the discount rate: a high rate favours the lump sum while a low one favours guaranteed income. Pension income also carries no investment or longevity risk. The joint and survivor option costs income now to protect a surviving spouse later, which is a decision about the survivor rather than about total value.
Pension Payout Option
Present value = monthly income × annuity factor at the chosen discount rate
This is a general illustration, not financial, tax or legal advice. Rules, thresholds and rates vary by jurisdiction and change frequently, and individual circumstances materially affect outcomes. Consult a qualified adviser before making any decision based on these figures.
Present value = monthly income × annuity factor at the chosen discount rate The comparison depends heavily on the discount rate: a high rate favours the lump sum while a low one favours guaranteed income. Pension income also carries no investment or longevity risk.
The joint and survivor option costs income now to protect a surviving spouse later, which is a decision about the survivor rather than about total value.
This calculator takes 6 inputs: Lump sum offer, Single life monthly income, Joint and survivor monthly income, Retirement age, Life expectancy, Discount rate. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.