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How to Use
Annuity vs Lump Sum Calculator
Compare taking your pension as regular payments or one-time lump sum
Pension Options
Current Age
Your current age in years
Life Expectancy
Expected lifespan for calculations
Annuity Option
Monthly Annuity Payment ($)
Monthly payment you'd receive with the annuity option
Inflation Adjustment
Does the annuity payment increase with inflation?
Annual Inflation Rate (%)
Expected average annual inflation rate
Lump Sum Option
Lump Sum Amount ($)
One-time payment you'd receive with lump sum option
Investment Return (%)
Expected average annual return if you invest the lump sum
Survivor Benefits
Include Spouse/Partner
Does the annuity continue for a surviving spouse?
Spouse Age
Survivor %
Compare Options
Comparison Results
Enter your pension details and click "Compare Options" to see results
0
Break-Even Age
$0
Total Annuity Payments
$0
Lump Sum Value at Life Expectancy
Detailed Year-by-Year Comparison
Age
Annuity Total
Lump Sum Value
Difference
Better Option
Decision Factors to Consider
Choose Annuity If:
• You want guaranteed income for life
• You're concerned about outliving your savings
• You prefer simplicity over investment management
• You have a spouse who needs survivor benefits
• You're not comfortable managing investments
Choose Lump Sum If:
• You're confident in your investment skills
• You want flexibility and control over your money
• You have other sources of guaranteed income
• You want to leave an inheritance
• You have significant health concerns
Need help? Check out the detailed tutorial