Pension Calculator

Monthly payments provide predictable income and may include survivor options; lump sums give control and potential growth but add investment and longevity risk. Compare the lump sum to what an annuity would cost to replicate the pension stream, and consider your health and spouse’s needs.

Many private pensions are not fully COLA-adjusted; public plans sometimes are. If your pension is fixed in nominal dollars, inflation erodes buying power over a long retirement — your savings and Social Security may need to carry more of the inflation hedge.

A reliable pension reduces the portfolio needed for the same lifestyle. Still save for healthcare, inflation gaps, early retirement before pension start dates, and legacy goals. Treat the pension as one income layer, not a reason to skip all other savings without running the numbers.