Pension Payout Options Calculator - Compare Pension Monthly Payments vs Lump Sum Retirement Options

Monthly Pension Payments vs. Lump-Sum Payout Calculator

Your retirement age:

Lump sum payment amount ($):

Investment return (% per year):

Monthly pension income ($ per month):

Cost-of-living adjustment (% per year):

Analysis Results

Visual Comparison

Detailed Monthly Breakdown

Should I Take a $500,000 Lump Sum or Keep a $3,500 Monthly Pension at Age 67?

With the investment return of 5% per year, if you can live up to age 80.3 or older, it is better to take monthly pension income. Otherwise, it is better to take the lump sum payout.

Lump Sum Pension or Monthly Payment for Life at Age 65?

Let’s say you:

Lump sum payment amount: $800,000
Investment return: 5%
Monthly pension income: $4,500
Cost-of-living adjustment: 3.5%

Based on 5.0% annual investment returns, choosing monthly pension payments becomes more beneficial if you expect to live beyond age 82.0. For shorter lifespans, the lump sum option would be preferable.