Pension Calculator

Estimate the value of your pension income stream.

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Pension Value

Enter your pension details to calculate its value.

Present value of pension
$0
Total lifetime income: $0
Years of pension payments
0
Total lifetime income
$0
Present value today
$0
Monthly pension income
$0
Years to break even
0
Lump sum equivalent
$0

Worked example

With the default inputs shown below, this calculator returns the following results:

InputValue
Annual pension income ($)$30,000
Current age45
Pension starting age65
Life expectancy90
Discount rate (%)5%
ResultValue
Present value of pension$159,356
Years of pension payments25
Total lifetime income$750,000
Present value today$159,356
Monthly pension income$2,500/mo
Years to break even20 yrs

Values shown are produced by this page in your browser; change any input to update them.

How to use the Pension Value

  1. Annual pension income ($) — default $30,000
  2. Current age — default 45
  3. Pension starting age — default 65
  4. Life expectancy — default 90
  5. Discount rate (%) — default 5%
  6. Press Calculate to update the results instantly.

Frequently asked questions

Add up the expected payments and discount them back to today. A $2,000 monthly pension for 25 years is worth roughly $300,000 at a 5% discount rate.
Compare the lump sum with the present value of the monthly payments. If the pension's present value is higher, the pension is usually the better deal.
The age at which total pension payments equal the lump sum offered. It is often between 78 and 82; longer life expectancy favours the pension.

Sources & references