Pension Plan Retirement Options
It is very important to understand the pros and cons of each pension option that is available to you. Some options are intended to protect your spouse in the event of your death, while others are intended to provide you with larger monthly distributions after you retire. To examine the cost and benefits of your various pension plan options, simply use our Pension Plan Retirement Options Calculator below.
Financial Calculators from
Pension and plan retirement options:
Press spacebar to hide inputs
Dying at age 83 requires a lump sum of $271,928 to replace your survivor benefit.
press spacebar to hide graph
Your current age.
Age you are going to retire and begin receiving your pension benefits.
Your life expectancy
Your estimated age of death. This is the age at which Single Annuitant Pension benefits would end.
The current age of your spouse.
Spouse's life expectancy
The estimated age of your spouse's death. This is the age they will no longer require benefits.
Single pension at retirement
The monthly pension payment you will receive if you choose a single annuitant pension.
Joint pension at retirement
The monthly pension payment you will receive if you choose a joint survivorship pension.
Insurance cost per thousand
Your estimated cost of life insurance per thousand dollars of coverage per year. Please note that this is only an estimate, your actual costs can vary considerably depending on your health, sex and age. This calculator assumes that your life insurance has no cash value.
Indexed for COLA
If your pension is indexed for a Cost of Living Adjustment, check this box.
COLA annual adjustment
This is the rate your cost of living increases each year. This is also used if your pension is indexed for a Cost of Living Adjustment. This is what you expect for the average long-term inflation rate. A common measure of inflation in the U.S. is the Consumer Price Index (CPI). From 1925 through 2018 the CPI has a long-term average of 2.9% annually. Over the last 40 years highest CPI recorded was 13.5% in 1980. For 2018, the last full year available, the CPI was 2.2% annually as reported by the Minneapolis Federal Reserve.
Rate of return on investments
This is the annually compounded rate of return you expect from your investments. The actual rate of return is largely dependent on the types of investments you select. The Standard & Poor's 500® (S&P 500®) for the 10 years ending December 31st 2018, had an annual compounded rate of return of 12.1%, including reinvestment of dividends. From January 1, 1970 to December 31st 2018, the average annual compounded rate of return for the S&P 500®, including reinvestment of dividends, was approximately 10.2% (source: www.standardandpoors.com). Since 1970, the highest 12-month return was 61% (June 1982 through June 1983). The lowest 12-month return was -43% (March 2008 to March 2009). Savings accounts at a financial institution may pay as little as 0.25% or less but carry significantly lower risk of loss of principal balances.
It is important to remember that these scenarios are hypothetical and that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that investment funds and/or investment companies may charge. For the purposes of this calculator, taxation is not factored into the results. If you pay taxes on the interest, dividends or capital gains from these investments, you may wish to enter your after-tax rate of return.
Cost of insurance per thousand
This is the yearly cost of insurance per thousand dollars of coverage. For example, if you need $500,000 of life insurance coverage and have a cost of $10 per thousand, your annual premium would be $5,000.
Why use the Pension Plan Retirement Options Calculator?
The purpose of the Pension Plan Retirement Options calculator is to show you the costs and benefits associated with the various pension plan retirement options. To use this tool you will need to enter various pieces of information about yourself and your spouse (where applicable). The calculator will take all of this information into consideration in order to show you the monthly cost for life insurance, how much your monthly cost for Joint Survivor Benefits will be, and what your lump sum payout will need to be in order to replace your survivor benefit.
How to use the Pension Plan Retirement Options Calculator
Not sure where to start? Let us help you:
- Enter your current age and your expected retirement age, by typing into the white boxes or using the sliders
- Input your life expectancy – obviously this will not be exact but make an estimate
- Add the current age and life expectancy of your spouse, where applicable
- Enter your expected monthly payouts for both single and joint pensions
- Add the cost of your insurance, per $1000 of coverage
- Input your expected rate of return
- Specify whether pension is indexed for a Cost of Living Adjustment, and the rate your cost of living increases by each year
- Click Calculate to view your analysis.
Who is this Calculator for?
This calculator is most useful if you:
- Need a quick analysis of what your pension plan means in real terms
- Want to know your optimum retirement age, based on your pension plan
- Would like to compare the impact on your pension of different rates of return
What if I exceed my life expectancy?
In this case, aside from congratulating yourself it is not likely that you will be required to take any action as your plan should cover you until you do reach the end of your life.
Where can I find out more about my pension options?
It is very important to do all we can to ensure that we will be well looked after throughout our golden years. The Mortgage Loan Knowledge Base is packed with useful articles that can help you to get the very best value from your pensions and other investments.
I want to invest money in property instead, what can I do?
Thinking about buying some property but need mortgage financing? Click the "Get FREE Quote" button and answer the questions that follow. Based on the information you provide, our network of trusted lenders serving your areas will evaluate your information and provide you with rate quotes based on your specific request. This service is provided completely free or charge and without obligation, so there’s nothing to lose – and you may be pleasantly surprised by the rates lenders are willing to offer.
Other Mortgage and Financial Calculators
In addition to the standard mortgage calculator, this page lets you access more than 100 other financial calculators covering a broad variety of situations. Choose from calculators covering various aspects of mortgages, auto loans, investments, student loans, taxes, retirement planning and more.
- Adjustable Rate Mortgage Calculator
- Interest Only ARM Calculator Overview
- How much can I borrow?
- Mortgage comparison: 15 years vs 30 years
- Balloon Loan Calculator
- ARM vs. Fixed-Rate Mortgage Calculator
- APR Calculator for Adjustable Rate Mortgages
- Bi-weekly Payment Calculator
- Blended Rate Mortgage Calculator
- Fixed Rate Mortgage vs. Interest Only ARM calculator
- Mortgage Tax Savings Calculator
- Rent vs. Buy Calculator
- Mortgage Payoff Calculator
- Mortgage Required Income Calculator
- Interest-Only Mortgage Calculator
- Mortgage Qualifying Calculator
- Mortgage Calculator Simple (PITI) - Mortgage Calculation
- Mortgage APR Calculator
- Bi-Weekly Payment Calculator For an Existing Mortgage
- Enhanced Loan Calculator
- Existing Loan Calculator
- Mortgage Debt Consolidation Calculator
- Mortgage Points Break-Even Calculator
- Refinance Break-Even Calculator
- Refinance Calculator
- Auto Rebate vs. Low Interest Financing
- Bi-weekly Payments for an Auto Loan Calculator
- Dealer Financing vs. Credit Union Financing Calculator
- Auto Lease vs. Auto Buy Calculator
- Home Equity vs. Auto Loan Calculator
- Auto Loan Calculator
- Bi-weekly Payments for an Auto Loan Calculator
- Auto Loan Payoff Calculator
- Retirement Income Calculator
- 401(k) Net Unrealized Appreciation Calculator
- 401(k) Savings Calculator
- 403(b) Savings Calculator
- 457 Savings Calculator
- 72(t) Distribution Impact Calculator
- Beneficiary Required Minimum Distributions
- Pension Plan Retirement Options
- Retirement Contribution Effects Calculator
- Retirement Planner
- Roth vs. Traditional IRA Calculator
- 72(t) Distribution Options Calculator
- Social Security Benefits Calculator