How is the Pension: Lump Sum vs Monthly calculated?

We convert the monthly pension into a single value today (its present value) so it can be compared apples-to-apples with the lump-sum offer.

What data and assumptions does it use?

Standard present-value-of-an-annuity formula (public domain); the discount rate is a shown, configurable assumption.

Income · Live reading

Lump sum or monthly — which wins? Move a dial — your result responds instantly.

Calibrate

Drag to set each value — estimates are fine.

Lump-sum offer

The one-time payout being offered.

Monthly pension offer

The lifetime monthly payment being offered.

Years you expect to collect

How many years you expect to receive the pension.

Discount rate

The return you could earn investing the lump sum instead.

Avery Advisor

Evergreen Retirement Planning

I help people approaching or living in retirement turn savings into dependable income — with clear, conservative guidanc...

Book a 15-minute review advisor@retirementconfidencecenter.com

What this means for you

Get a plain-English summary of your reading.

Levers that move this

Drag these dials above to see the effect instantly.

Track your progress over time

Save your reading and watch it change as you adjust your plan — create a free account in seconds.

Save my plan →

Also share my saved results with Evergreen Retirement Planning so they can help me plan

This is an educational comparison using a discount-rate assumption shown with your results; it ignores taxes, COLA, and survivor options.