Pension Lump Sum Calculator
Should you take the guaranteed monthly pension or the lump sum? Compare both options side by side, or dive into the actuarial details with IRS 417(e) segment rates.
Higher Present Value
Pension
by $168,722 in present value
Pension Present Value
$668,722
Lump Sum After 25yr
$153,503
Breakeven Return
5.26%
to last 25 years
Pension vs. Lump Sum Over Retirement
Cumulative pension payments compared to the projected lump sum portfolio balance over time.
Your Information
Birthday allows for more precise results
If not specified, unisex mortality tables will be used
Benefit Commencement
Exact date allows for more precise results
Pension Benefit
Enter the annual amount you would receive at commencement based on your selected survivorship option
Annual increase applied to your benefit (increasingly rare in modern plans)
IRS Segment Rates
Pre-populated with current rates. Adjust to see impact on lump sum value.
4.03% as of Dec 2024
5.17% as of Dec 2024
6.11% as of Dec 2024
Estimated Lump Sum Value
$447,535
At segment rates: 4.03% / 5.17% / 6.11%
Annual Benefit
$50,000
Monthly Benefit
$4,167
COLA Rate
0%
Rate Sensitivity Analysis
Shows how the estimated lump sum changes as interest rates shift up or down.
Rate Sensitivity Table
| Shift | Seg 1 | Seg 2 | Seg 3 | Est. Lump Sum |
|---|---|---|---|---|
| +300 bps | 7.03% | 8.17% | 9.11% | $373,088 |
| +275 bps | 6.78% | 7.92% | 8.86% | $378,412 |
| +250 bps | 6.53% | 7.67% | 8.61% | $383,877 |
| +225 bps | 6.28% | 7.42% | 8.36% | $389,489 |
| +200 bps | 6.03% | 7.17% | 8.11% | $395,252 |
| +175 bps | 5.78% | 6.92% | 7.86% | $401,172 |
| +150 bps | 5.53% | 6.67% | 7.61% | $407,256 |
| +125 bps | 5.28% | 6.42% | 7.36% | $413,508 |
| +100 bps | 5.03% | 6.17% | 7.11% | $419,935 |
| +75 bps | 4.78% | 5.92% | 6.86% | $426,545 |
| +50 bps | 4.53% | 5.67% | 6.61% | $433,343 |
| +25 bps | 4.28% | 5.42% | 6.36% | $440,337 |
| 0 bps (Current) | 4.03% | 5.17% | 6.11% | $447,535 |
| -25 bps | 3.78% | 4.92% | 5.86% | $454,943 |
| -50 bps | 3.53% | 4.67% | 5.61% | $462,572 |
| -75 bps | 3.28% | 4.42% | 5.36% | $470,429 |
| -100 bps | 3.03% | 4.17% | 5.11% | $478,523 |
| -125 bps | 2.78% | 3.92% | 4.86% | $486,864 |
| -150 bps | 2.53% | 3.67% | 4.61% | $495,462 |
| -175 bps | 2.28% | 3.42% | 4.36% | $504,327 |
| -200 bps | 2.03% | 3.17% | 4.11% | $513,470 |
| -225 bps | 1.78% | 2.92% | 3.86% | $522,903 |
| -250 bps | 1.53% | 2.67% | 3.61% | $532,638 |
| -275 bps | 1.28% | 2.42% | 3.36% | $542,687 |
| -300 bps | 1.03% | 2.17% | 3.11% | $553,063 |
About This Analysis
This calculator provides estimates based on the inputs you supply. It assumes standard amortization and does not account for taxes, insurance, PMI, prepayment penalties, or the opportunity cost of funds. Results are for informational and educational purposes only and should not be considered financial advice. Consult a qualified professional before making financial decisions.
- ·Estimates are based on IRS 417(e) methodology using the 2017 CSO Mortality Table.
- ·Actual lump sum offers from your pension plan may differ due to plan-specific factors, timing, and other variables.
- ·Consult with your plan administrator and a qualified financial advisor before making any decisions about your pension benefits.