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    The math behind the rule is straightforward: Take the monthly pension amount and multiply it by 12, then divide this number by the lump sum offer. Bear in mind that a pension, in theory, is paying you back your own money. And on your own, you can withdraw 5% per year from any lump sum offer you take (even if the funds are earning 0%).
    clark.com/personal-finance-credit/investing-retirem…
    To calculate your percentage, take your monthly pension amount and multiply it by 12, then divide that total by the lump sum. Consider the following scenario. Your pension is $1,000 per month for life or a $160,000 buyout. Do the math ($1,000 x 12 = $12,000/$160,000), and you get 7.5%.
    www.yourwealth.com/if-youre-weighing-lump-sum-…
     
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  4. Monthly Pension Payments vs. Lump-Sum Payout …

    If you have a pension, you may need to decide whether to take monthly payments or a one-time lump-sum payout. This calculator helps you make a more informed decision by comparing the results of both scenarios.

     
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    Jul 6, 2020 · To calculate your percentage, take your monthly pension amount and multiply it by 12, then divide that total by the lump sum. Consider the following scenario. Your pension is $1,000 per month for life or a $160,000 buyout. Do …

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    Dec 8, 2021 · In Figure 1, I compare a lump-sum offer of $500K to the 100% joint survivor pension option, which is $25K a year. Single investors use the single-life pension payout.

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