EXACTLY How to Calculate What Your Pension Is Really Worth

EXACTLY How to Calculate What Your Pension Is Really Worth A little support goes a long way! If you’d like to help me keep creating, you can do so at https://ko-fi.com/liamfinance How much is your pension really worth? A $2,000 monthly pension can produce very different answers depending on how you calculate it. Using the common 4% income-equivalent method, $2,000 a month looks like roughly $600,000. But at 2026 annuity market rates, replacing that same $2,000 monthly single-life income could cost closer to $316,000 for a 65-year-old man or about $333,000 for a woman. So which number is correct? They answer different questions. In this video, we break down three ways to calculate pension value: Income-equivalent value Lifetime payment value Actuarial or market value We also explain how age, interest rates, survivor benefits, COLA adjustments, and life expectancy can dramatically change what a pension is actually worth. A $2,000 pension with full survivor protection can be worth far more than the same monthly payment that ends when the retiree dies. And a pension with an inflation adjustment can deliver substantially more lifetime income than a fixed pension starting at the same amount. The key takeaway: multiplying your annual pension by 25 does not tell you its true cash value. It only tells you how much invested money might be needed to produce similar first-year income. Know which value you are calculating before comparing your pension with a lump sum or investment portfolio. #Pension #Retirement #RetirementPlanning #PensionValue #RetirementIncome Disclaimer: This video is for general educational and informational purposes only and does not constitute financial, investment, tax, pension, actuarial, or retirement advice. Pension values depend on age, interest rates, mortality assumptions, survivor benefits, COLA provisions, plan rules, and market conditions. Individual results will vary.