What happens to a pension annuity when I die?

A single-life annuity stops upon your death. A joint-and-survivor annuity continues paying a portion (e.g. 50%, 75%, or 100%) to your surviving spouse for the remainder of their life, in exchange for a slightly reduced monthly payout.

Updated: August 2026 • Verified v1.2

Pension Lump Sum vs Monthly Annuity Calculator

Finance & MathPopular

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BreakEven_Years = Lump_Sum / (Monthly_Pension * 12); FV_Lump = Lump * (1+r)^n - Annuity_Withdrawals

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Understanding Your Results

Calculates the break-even crossover age, total cumulative annuity payouts across retirement milestones, projected invested lump-sum balance at age 85, and delivers objective actuarial guidance based on longevity.

Practical Guidance & Next Steps

If you have a strong family history of longevity (living past age 82) or lack investment confidence, the guaranteed monthly annuity provides powerful longevity insurance against outliving your capital.

What is this?

A retirement planning utility that analyzes whether to accept a pension lump-sum buyout or lifetime monthly annuity.

How does it work?

1. Enter lump-sum buyout offer, monthly annuity payment, and retirement age. 2. Enter expected investment return and COLA percentage. 3. View your exact break-even age, total payouts by age 85, and portfolio comparison.

Why use it?

Empowers retirees to make the irreversible pension buyout decision with transparent mathematical data.

Technical Scope & Calculation Limitations

Models standard actuarial cash-flow projections and investment compounding.

Frequently Asked Questions

The break-even age is the age at which the total sum of monthly pension payments equals the lump-sum cash offer. If you live past this break-even age, the monthly annuity yields more lifetime wealth.

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