Pension Calculator 2018-08-10T11:13:36+00:00

Pension Calculator

Pension policies can vary with different organizations. Because important pension-related decisions made before retirement cannot be reversed, employees may need to consider them carefully. The following calculations can help evaluate three of the most common situations.

Lump Sum Payout or Monthly Pension Income?

There are mainly two options regarding how to receive income from a pension plan: either take it out as a lump sum payment, or have it slowly released in a stream of cash flows over time until the retiree passes away (or in some cases, until both the retiree and their spouse passes away).

Your Retirement Age
Option 1: Lump Sum Payment
Lump Sum Payment Amount
Your Investment Return per year
Option 2: Monthly Pension Payment
Monthly Pension Income per month
Cost-of-Living Adjustment1 per year

Single-Life or Joint-and-Survivor Pension Payout?

Single-life pension means the employer will pay their employee’s pension until their death. This payment option offers a higher payment per month but will not continue paying benefits to a spouse who outlives the retiree. In contrast, joint-and-survivor pension payout pays a lower payment per month, but when the retiree dies, the surviving spouse will continue receiving benefits for their remaining life.

Your Retirement Age
Your Life Expectancy
Spouse’s Age When you Retire
Spouse’s Life Expectancy
Single Life Pension /month
Joint Survivor Pension /month
Your Investment Return per year
Cost-of-Living Adjustment1 per year

Should You Work Longer for a Better Pension?

It is possible for some people to postpone retirement for several years for more pension income later. Different people have different mentalities regarding retirement. Use this calculation to see which option is preferred financially.

Pension Option 1
Retirement Age
Monthly Pension Income per month
Pension Option 2 (Work Longer)
Retirement Age
Monthly Pension Income per month
Other Information
Your Investment Return per year
Cost-of-Living Adjustment1 per year