Pension Lump Sum Versus Annuity Calculator
Pension Lump Sum Versus Annuity: a planned Super Calculator tool. Covers lump sum offered (currency). Stub page while the tool and its worked example are.
Pension Lump Sum Versus Annuity Calculator is a planned calculator in the finance section of Super Calculator, covering retirement.
What this calculator will compute
Inputs: lump sum offered (currency), monthly pension offered (currency), age, life expectancy, survivor percentage (%), indexation (%) and discount rate (%).
Outputs: implied return on the pension (%), break even age and present value of each option (currency).
Formula, recorded as scope and not yet verified against a primary source: Computes the implied internal rate of return on forgoing the lump sum in exchange for the pension income stream over a life expectancy, then compares against a market rate for a comparable guaranteed income, accounting for survivor benefits and any inflation indexation.
Status
This page is a stub. The calculator is not built, no figure on this page has been verified against the authority that sets it, and nothing here should be used to make a decision. The page exists so that the site structure is complete and so that articles can link this concept on first mention.
The stub carries noindex, nofollow and is excluded from the sitemap.