Pension Decision Calculator

Lump Sum vs Monthly Income, Simplified

Compare your pension options step by step. Navigate through each tab to enter your information and see which option works best for you.

Retirement Basics

Let's start with your core retirement information

SSA average: 84 (men), 87 (women). Can model up to 120.

Historical stock market: ~10% annually

Expected inflation rate

Understanding Your Pension Decision

Choosing between a pension lump sum and monthly income is one of the most important financial decisions you'll make in retirement. This calculator helps you compare both options by analyzing total lifetime income, investment growth potential, and breakeven points based on your life expectancy and financial assumptions.

Lump Sum vs Monthly Pension: What to Consider

A lump sum gives you control and flexibility to invest, manage withdrawals, and leave assets to heirs. However, it requires disciplined management and exposes you to market risk. Monthly pensions provide guaranteed income for life, protecting against longevity risk and market volatility, but offer less flexibility and typically no inheritance value.

How to Use This Calculator

Use the tabbed interface to navigate through each section. Start with your retirement basics, then enter your lump sum and pension options. Add spouse information if applicable, and explore how delaying retirement impacts your benefits. The calculator provides comprehensive analysis including breakeven points, net present value comparisons, and visual charts.

Understanding the Results

The results show total lifetime income for both options, the breakeven age where pension income surpasses the lump sum value, and net present value comparisons. The charts visualize how cumulative income grows over time. These insights help you make an informed decision based on your unique circumstances, risk tolerance, and financial goals.

Download your complete analysis as a spreadsheet or save the charts for future reference. Remember, this calculator provides estimates based on the assumptions you enter—consider consulting with a financial advisor before making your final decision.

Embed This Calculator on Your Site

Add this Pension Decision Calculator to your website. Copy the embed code below and customize the URL parameters to prefill values for your audience.

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  src="https://tangibill.net/embed/pension?retirementAge=65&lifeExpectancy=85&investmentReturn=7&cola=2&hasLumpSumOption=true&matchPensionIncome=false&includeTerminalBalance=true&lumpSumAmount=500000&lumpSumReturn=7&withdrawalRate=4&monthlyPension=2500&pensionCola=2&delayYears=0&pensionIncreasePerYear=5" 
  width="100%" 
  height="1200" 
  style="border:0;"
  title="Pension Decision Calculator"
  loading="lazy">
</iframe>

Customize the URL parameters to match your users' typical scenarios.