Choosing between a Lump Sum payout or a Monthly Annuity can be confusing. Using a Time Value of Money Calculator to determine what the Internal Rate of Return is needed to match, or even beat, the distribution yield of the annuity can help you decide.
A general consensus in the past has been if the distribution yield on a lump sum offer is above a certain percentage, then it's best to take the pension. But, that's not always the case. It's important to calculate what return you would need if you accepted the lump sum and invested it yourself. The results can sometimes be surprising. Using a TVM calculator is an excellent tool that can assist in your decision.
Calculator used in this video: [ Ссылка ]
Interesting article from Charles Schwab that discusses this topic further: [ Ссылка ]
