Pension Lump Sum vs. Annuity Calculator

Use a rate that reflects what you could earn investing the lump sum — typically 4–6% for a balanced portfolio.

If the pension has no cost-of-living adjustment (COLA), its real value erodes over time. Factor inflation into the discount rate.

Yes: pension survivor benefits, your health and life expectancy, the pension plan's financial stability, and tax treatment all affect the decision.