Pension worksheet

1. Monthly pension: $3,510.00

1. Multiply your years of service by the multiplier. This is the share of your salary the pension replaces

   $26\times \mathrm{1.8\%}$$=\mathrm{46.8\%}$

2. Take that share of your final average salary to get your pension for a year

   $\mathrm{46.8\%}\times \mathrm{\$90,000.00}$$=\mathrm{\$42,120.00}$

3. Divide by 12 to get your monthly payment

   $\frac{\mathrm{\$42,120.00}}{12}$$=\mathrm{\$3,510.00}$

4. Divide the lump sum by the monthly payment. That's how many payments it takes to match it, with no investing

   $\frac{\mathrm{\$400,000.00}}{\mathrm{\$3,510.00}}$$=113.96\text{\hspace{0.17em}payments}$

5. Round up to 114 whole months and add them to your starting age. This is the plain break-even age

   $50+\frac{114}{12}$$=59.5\text{\hspace{0.17em}years old}$

6. Turn the 3% yearly return into a monthly rate, because the payments are monthly

   $\text{monthly rate}$$=\mathrm{0.2466\%}$

7. Suppose you invest the lump sum and pay yourself $3,510.00 a month. The money lasts 134 months. After that, the pension is ahead

   $50+\frac{134}{12}$$=61.2\text{\hspace{0.17em}years old}$

8. Total the payments from age 50 to age 95

   $\mathrm{\$3,510.00}\times 540$$=\mathrm{\$1,895,400.00}$

9. Find what's left of the invested lump sum at age 95, if you paid yourself the same amount

   $\text{left at that age}$$=\mathrm{\$0.00}$

2. Monthly pension: $3,780.00

1. Multiply your years of service by the multiplier. This is the share of your salary the pension replaces

   $36\times \mathrm{1.8\%}$$=\mathrm{64.8\%}$

2. Take that share of your final average salary to get your pension for a year

   $\mathrm{64.8\%}\times \mathrm{\$70,000.00}$$=\mathrm{\$45,360.00}$

3. Divide by 12 to get your monthly payment

   $\frac{\mathrm{\$45,360.00}}{12}$$=\mathrm{\$3,780.00}$

4. Divide the lump sum by the monthly payment. That's how many payments it takes to match it, with no investing

   $\frac{\mathrm{\$410,000.00}}{\mathrm{\$3,780.00}}$$=108.47\text{\hspace{0.17em}payments}$

5. Round up to 109 whole months and add them to your starting age. This is the plain break-even age

   $50+\frac{109}{12}$$=59.1\text{\hspace{0.17em}years old}$

6. Turn the 5% yearly return into a monthly rate, because the payments are monthly

   $\text{monthly rate}$$=\mathrm{0.4074\%}$

7. Suppose you invest the lump sum and pay yourself $3,780.00 a month. The money lasts 144 months. After that, the pension is ahead

   $50+\frac{144}{12}$$=62\text{\hspace{0.17em}years old}$

8. Total the payments from age 50 to age 90

   $\mathrm{\$3,780.00}\times 480$$=\mathrm{\$1,814,400.00}$

9. Find what's left of the invested lump sum at age 90, if you paid yourself the same amount

   $\text{left at that age}$$=\mathrm{\$0.00}$

3. Monthly pension: $6,056.25

1. Multiply your years of service by the multiplier. This is the share of your salary the pension replaces

   $45\times \mathrm{1.7\%}$$=\mathrm{76.5\%}$

2. Take that share of your final average salary to get your pension for a year

   $\mathrm{76.5\%}\times \mathrm{\$95,000.00}$$=\mathrm{\$72,675.00}$

3. Divide by 12 to get your monthly payment

   $\frac{\mathrm{\$72,675.00}}{12}$$=\mathrm{\$6,056.25}$

4. Divide the lump sum by the monthly payment. That's how many payments it takes to match it, with no investing

   $\frac{\mathrm{\$620,000.00}}{\mathrm{\$6,056.25}}$$=102.37\text{\hspace{0.17em}payments}$

5. Round up to 103 whole months and add them to your starting age. This is the plain break-even age

   $75+\frac{103}{12}$$=83.6\text{\hspace{0.17em}years old}$

6. Turn the 4% yearly return into a monthly rate, because the payments are monthly

   $\text{monthly rate}$$=\mathrm{0.3274\%}$

7. Suppose you invest the lump sum and pay yourself $6,056.25 a month. The money lasts 125 months. After that, the pension is ahead

   $75+\frac{125}{12}$$=85.4\text{\hspace{0.17em}years old}$

8. Total the payments from age 75 to age 98

   $\mathrm{\$6,056.25}\times 276$$=\mathrm{\$1,671,525.00}$

9. Find what's left of the invested lump sum at age 98, if you paid yourself the same amount

   $\text{left at that age}$$=\mathrm{\$0.00}$

4. Monthly pension: $3,500.00

1. Multiply your years of service by the multiplier. This is the share of your salary the pension replaces

   $35\times \mathrm{1.5\%}$$=\mathrm{52.5\%}$

2. Take that share of your final average salary to get your pension for a year

   $\mathrm{52.5\%}\times \mathrm{\$80,000.00}$$=\mathrm{\$42,000.00}$

3. Divide by 12 to get your monthly payment

   $\frac{\mathrm{\$42,000.00}}{12}$$=\mathrm{\$3,500.00}$

4. Divide the lump sum by the monthly payment. That's how many payments it takes to match it, with no investing

   $\frac{\mathrm{\$475,000.00}}{\mathrm{\$3,500.00}}$$=135.71\text{\hspace{0.17em}payments}$

5. Round up to 136 whole months and add them to your starting age. This is the plain break-even age

   $45+\frac{136}{12}$$=56.3\text{\hspace{0.17em}years old}$

6. Turn the 5% yearly return into a monthly rate, because the payments are monthly

   $\text{monthly rate}$$=\mathrm{0.4074\%}$

7. Suppose you invest the lump sum and pay yourself $3,500.00 a month. The money lasts 198 months. After that, the pension is ahead

   $45+\frac{198}{12}$$=61.5\text{\hspace{0.17em}years old}$

8. Total the payments from age 45 to age 100

   $\mathrm{\$3,500.00}\times 660$$=\mathrm{\$2,310,000.00}$

9. Find what's left of the invested lump sum at age 100, if you paid yourself the same amount

   $\text{left at that age}$$=\mathrm{\$0.00}$

5. Monthly pension: $2,940.00

1. Multiply your years of service by the multiplier. This is the share of your salary the pension replaces

   $28\times \mathrm{1.4\%}$$=\mathrm{39.2\%}$

2. Take that share of your final average salary to get your pension for a year

   $\mathrm{39.2\%}\times \mathrm{\$90,000.00}$$=\mathrm{\$35,280.00}$

3. Divide by 12 to get your monthly payment

   $\frac{\mathrm{\$35,280.00}}{12}$$=\mathrm{\$2,940.00}$

4. Divide the lump sum by the monthly payment. That's how many payments it takes to match it, with no investing

   $\frac{\mathrm{\$600,000.00}}{\mathrm{\$2,940.00}}$$=204.08\text{\hspace{0.17em}payments}$

5. Round up to 205 whole months and add them to your starting age. This is the plain break-even age

   $56+\frac{205}{12}$$=73.1\text{\hspace{0.17em}years old}$

6. Turn the 5% yearly return into a monthly rate, because the payments are monthly

   $\text{monthly rate}$$=\mathrm{0.4074\%}$

7. Suppose you invest the lump sum and pay yourself $2,940.00 a month. The money lasts 438 months. After that, the pension is ahead

   $56+\frac{438}{12}$$=92.5\text{\hspace{0.17em}years old}$

8. Total the payments from age 56 to age 70

   $\mathrm{\$2,940.00}\times 168$$=\mathrm{\$493,920.00}$

9. Find what's left of the invested lump sum at age 70, if you paid yourself the same amount

   $\text{left at that age}$$=\mathrm{\$480,813.31}$

6. Monthly pension: $2,625.00

1. Multiply your years of service by the multiplier. This is the share of your salary the pension replaces

   $30\times \mathrm{1.4\%}$$=\mathrm{42\%}$

2. Take that share of your final average salary to get your pension for a year

   $\mathrm{42\%}\times \mathrm{\$75,000.00}$$=\mathrm{\$31,500.00}$

3. Divide by 12 to get your monthly payment

   $\frac{\mathrm{\$31,500.00}}{12}$$=\mathrm{\$2,625.00}$

4. Divide the lump sum by the monthly payment. That's how many payments it takes to match it, with no investing

   $\frac{\mathrm{\$500,000.00}}{\mathrm{\$2,625.00}}$$=190.48\text{\hspace{0.17em}payments}$

5. Round up to 191 whole months and add them to your starting age. This is the plain break-even age

   $68+\frac{191}{12}$$=83.9\text{\hspace{0.17em}years old}$

6. Turn the 4% yearly return into a monthly rate, because the payments are monthly

   $\text{monthly rate}$$=\mathrm{0.3274\%}$

7. Suppose you invest the lump sum and pay yourself $2,625.00 a month. The money lasts 299 months. After that, the pension is ahead

   $68+\frac{299}{12}$$=92.9\text{\hspace{0.17em}years old}$

8. Total the payments from age 68 to age 70

   $\mathrm{\$2,625.00}\times 24$$=\mathrm{\$63,000.00}$

9. Find what's left of the invested lump sum at age 70, if you paid yourself the same amount

   $\text{left at that age}$$=\mathrm{\$475,370.24}$

7. Monthly pension: $2,100.00

1. Multiply your years of service by the multiplier. This is the share of your salary the pension replaces

   $28\times \mathrm{1.5\%}$$=\mathrm{42\%}$

2. Take that share of your final average salary to get your pension for a year

   $\mathrm{42\%}\times \mathrm{\$60,000.00}$$=\mathrm{\$25,200.00}$

3. Divide by 12 to get your monthly payment

   $\frac{\mathrm{\$25,200.00}}{12}$$=\mathrm{\$2,100.00}$

4. Divide the lump sum by the monthly payment. That's how many payments it takes to match it, with no investing

   $\frac{\mathrm{\$560,000.00}}{\mathrm{\$2,100.00}}$$=266.67\text{\hspace{0.17em}payments}$

5. Round up to 267 whole months and add them to your starting age. This is the plain break-even age

   $55+\frac{267}{12}$$=77.3\text{\hspace{0.17em}years old}$

6. Turn the 4% yearly return into a monthly rate, because the payments are monthly

   $\text{monthly rate}$$=\mathrm{0.3274\%}$

7. Suppose you invest the lump sum and pay yourself $2,100.00 a month. The money lasts 632 months. After that, the pension is ahead

   $55+\frac{632}{12}$$=107.7\text{\hspace{0.17em}years old}$

8. Total the payments from age 55 to age 95

   $\mathrm{\$2,100.00}\times 480$$=\mathrm{\$1,008,000.00}$

9. Find what's left of the invested lump sum at age 95, if you paid yourself the same amount

   $\text{left at that age}$$=\mathrm{\$250,337.65}$

8. Monthly pension: $4,275.00

1. Multiply your years of service by the multiplier. This is the share of your salary the pension replaces

   $38\times \mathrm{1.8\%}$$=\mathrm{68.4\%}$

2. Take that share of your final average salary to get your pension for a year

   $\mathrm{68.4\%}\times \mathrm{\$75,000.00}$$=\mathrm{\$51,300.00}$

3. Divide by 12 to get your monthly payment

   $\frac{\mathrm{\$51,300.00}}{12}$$=\mathrm{\$4,275.00}$

4. Divide the lump sum by the monthly payment. That's how many payments it takes to match it, with no investing

   $\frac{\mathrm{\$400,000.00}}{\mathrm{\$4,275.00}}$$=93.57\text{\hspace{0.17em}payments}$

5. Round up to 94 whole months and add them to your starting age. This is the plain break-even age

   $45+\frac{94}{12}$$=52.8\text{\hspace{0.17em}years old}$

6. Turn the 6% yearly return into a monthly rate, because the payments are monthly

   $\text{monthly rate}$$=\mathrm{0.4868\%}$

7. Suppose you invest the lump sum and pay yourself $4,275.00 a month. The money lasts 126 months. After that, the pension is ahead

   $45+\frac{126}{12}$$=55.5\text{\hspace{0.17em}years old}$

8. Total the payments from age 45 to age 80

   $\mathrm{\$4,275.00}\times 420$$=\mathrm{\$1,795,500.00}$

9. Find what's left of the invested lump sum at age 80, if you paid yourself the same amount

   $\text{left at that age}$$=\mathrm{\$0.00}$

9. Monthly pension: $4,125.00

1. Multiply your years of service by the multiplier. This is the share of your salary the pension replaces

   $33\times \mathrm{1.5\%}$$=\mathrm{49.5\%}$

2. Take that share of your final average salary to get your pension for a year

   $\mathrm{49.5\%}\times \mathrm{\$100,000.00}$$=\mathrm{\$49,500.00}$

3. Divide by 12 to get your monthly payment

   $\frac{\mathrm{\$49,500.00}}{12}$$=\mathrm{\$4,125.00}$

4. Divide the lump sum by the monthly payment. That's how many payments it takes to match it, with no investing

   $\frac{\mathrm{\$550,000.00}}{\mathrm{\$4,125.00}}$$=133.33\text{\hspace{0.17em}payments}$

5. Round up to 134 whole months and add them to your starting age. This is the plain break-even age

   $66+\frac{134}{12}$$=77.2\text{\hspace{0.17em}years old}$

6. Turn the 5% yearly return into a monthly rate, because the payments are monthly

   $\text{monthly rate}$$=\mathrm{0.4074\%}$

7. Suppose you invest the lump sum and pay yourself $4,125.00 a month. The money lasts 193 months. After that, the pension is ahead

   $66+\frac{193}{12}$$=82.1\text{\hspace{0.17em}years old}$

8. Total the payments from age 66 to age 80

   $\mathrm{\$4,125.00}\times 168$$=\mathrm{\$693,000.00}$

9. Find what's left of the invested lump sum at age 80, if you paid yourself the same amount

   $\text{left at that age}$$=\mathrm{\$96,793.74}$

10. Monthly pension: $2,970.00

1. Multiply your years of service by the multiplier. This is the share of your salary the pension replaces

   $36\times \mathrm{1.1\%}$$=\mathrm{39.6\%}$

2. Take that share of your final average salary to get your pension for a year

   $\mathrm{39.6\%}\times \mathrm{\$90,000.00}$$=\mathrm{\$35,640.00}$

3. Divide by 12 to get your monthly payment

   $\frac{\mathrm{\$35,640.00}}{12}$$=\mathrm{\$2,970.00}$

4. Divide the lump sum by the monthly payment. That's how many payments it takes to match it, with no investing

   $\frac{\mathrm{\$650,000.00}}{\mathrm{\$2,970.00}}$$=218.86\text{\hspace{0.17em}payments}$

5. Round up to 219 whole months and add them to your starting age. This is the plain break-even age

   $65+\frac{219}{12}$$=83.3\text{\hspace{0.17em}years old}$

6. Turn the 5% yearly return into a monthly rate, because the payments are monthly

   $\text{monthly rate}$$=\mathrm{0.4074\%}$

7. Suppose you invest the lump sum and pay yourself $2,970.00 a month. The money lasts 547 months. After that, the pension is ahead

   $65+\frac{547}{12}$$=110.6\text{\hspace{0.17em}years old}$

8. Total the payments from age 65 to age 120

   $\mathrm{\$2,970.00}\times 660$$=\mathrm{\$1,960,200.00}$

9. Find what's left of the invested lump sum at age 120, if you paid yourself the same amount

   $\text{left at that age}$$=\mathrm{\$0.00}$