Pension Decision Calculator
Compare lump sum vs monthly payments, survivor options, and benefits of working longer
Lump Sum vs Monthly Pension Comparison
Which option provides better financial security?
Monthly Pension Value
$648,000
Total estimated lifetime payments
Lump Sum Growth
$814,000
Estimated value at life expectancy
Recommended Option
Lump Sum
Based on your inputs
Lump Sum vs Monthly Pension Value Comparison Chart
Single-Life vs Joint & Survivor Pension
Which option provides better long-term security for your family?
Single-Life Total
$840,000
Total payments during your lifetime
Joint & Survivor Total
$1,152,000
Total payments to you and your spouse
Recommended Option
Joint & Survivor
Better for spousal security
Single-Life vs Joint & Survivor Payment Comparison Chart
Benefits of Working Longer
Is postponing retirement financially advantageous?
Additional Pension Income
$108,000
Over 20 years of retirement
Additional Salary Earned
$232,500
During extra working years
Financial Benefit
$340,500
Total financial advantage
Working Longer Financial Benefit Projection Chart
Pension Planning Strategies
Understanding Your Pension Options
- Lump sum vs monthly: A lump sum gives you control but requires investment management. Monthly payments provide guaranteed income for life.
- Single-life pension: Higher monthly payments that stop at your death. Best if you have no dependents.
- Joint & survivor pension: Lower payments that continue for your spouse’s lifetime. Essential for married couples.
- Working longer: Each additional year worked typically increases your pension benefit by 5-10%.
Key Considerations
- Your health and expected longevity significantly impact pension decisions
- Consider your spouse’s financial needs and life expectancy
- Evaluate your ability to manage a lump sum investment
- Factor in inflation’s impact on fixed pension payments
- Assess other retirement income sources before deciding
Important Note: This calculator provides estimates based on the information you provide. Actual pension benefits may vary based on your specific plan provisions. This tool is for educational purposes only and should not be considered financial advice. Pension decisions are irreversible in most cases – consult with a qualified financial advisor before making any decisions about your pension benefits.