Pension Lump Sum Calculator
Calculate your pension lump sum options and compare with regular annuity payments. Make informed decisions about your retirement benefits.
Step 1: Pension Details
Lump Sum Taxation
Typically, 25% of your pension pot can be taken tax-free as a lump sum. The remainder may be subject to income tax depending on your total income.
Step 2: Withdrawal Options
Annuity vs Lump Sum
An annuity provides guaranteed income for life but offers less flexibility. A lump sum gives you control but requires careful management to avoid outliving your savings.
Pension Options Analysis
Estimated Lump Sum Amount
Lump Sum vs Annuity Comparison
| Option | Initial Amount | Annual Income | Total 10 Years | Total 20 Years | Notes |
|---|
Pension Growth Projection
Pension Calculation Formula
Future Value = Present Value × (1 + Annual Growth)Years
Lump Sum = Future Value × Lump Sum Percentage. Annual Annuity = (Future Value – Lump Sum) × Annuity Rate. Calculations assume compound growth and fixed annuity rates.
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