Pension vs Lump Sum Calculator
Compare taking a monthly pension vs lump sum payout. Find the break-even age.
Break-Even Age
Age 75
Total Pension by 85
$1,038,418.68
Lump Sum Grown by 85
$1,909,874.83
Comparison
| Monthly Pension (start) | $3,000.00 |
| Monthly Pension (age 85, with COLA) | $4,637.94 |
| Lump Sum Monthly Income (4% rule) | $1,666.67 |
| Total Pension (23 years) | $1,038,418.68 |
| Lump Sum Invested (23 years) | $1,909,874.83 |
| Lump Sum After 4% Withdrawals | $746,866.99 |
Recommendation
| Lump sum appears better | Lump sum growth exceeds pension by $871,456.16 |
Use the Pension vs Lump Sum Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.
Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.
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