Free Excel Pension vs Lump Sum Comparison Template | Choose Your Retirement Benefit
Compare taking a pension vs lump sum distribution. Analyze which option works best for your retirement situation.
Download TemplateA pension vs lump sum comparison template is a free spreadsheet that analyzes both retirement benefit options side-by-side. It calculates lifetime income from pension vs portfolio withdrawals from lump sum, identifies breakeven age, and recommends the better choice based on your situation.
What You Get
3 sheets: Pension Analysis, Lump Sum Analysis, Comparison Summary
- Pension vs lump sum analysis
- Lifetime income projections
- Break-even analysis
- Recommendation calculator
Frequently Asked Questions
What is a breakeven age when comparing pension vs lump sum?
The age at which cumulative pension payments exceed lump sum value. This template calculates it. Often around 80-85.
Should I take my pension as monthly payments?
If you expect long life, prioritize safety, or are not confident investing. Guaranteed income regardless of market.
Should I take my pension as lump sum?
If you're confident investing, want flexibility, have short life expectancy, or want to leave money to heirs.
How do I calculate which option gives more lifetime income?
This template does it automatically. Models different life expectancies (75, 80, 85, 90+) and compares total received.
What is a joint and survivor pension option?
Pension continues to spouse after death, but monthly amount is lower. Trade-off between amount and security.
What happens to my lump sum if I die early?
Money goes to your heirs. Pension stops (unless you chose joint and survivor). Major advantage of lump sum if longevity is short.
How much should I expect for lump sum amount?
Typically 30-40x monthly pension payment. This template calculates if the offered lump sum is fair.
Can I move my lump sum to an IRA or 401k?
Yes, direct rollover to IRA. Important for tax-deferred growth. Advisor can help with this decision.
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