Pension vs Lump Sum Calculator
Compare taking a monthly pension vs a lump sum payout. Find out which option is better for you.
Factors to Consider
Pension Pros: Guaranteed income for life, no investment risk, often includes survivor benefits, simple to manage.
Lump Sum Pros: Control over your money, potential for higher returns, can leave full balance to heirs, flexibility in spending.
Health considerations: If you have health concerns or family history of shorter lifespan, the lump sum may be better. If you expect to live long, the pension wins.
Company risk: Pensions are backed by PBGC insurance (with limits). If your company's pension is underfunded, consider this risk.
This calculator provides estimates for educational purposes only.