Lump Sum vs. Annuity Payment Calculator
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Our lump sum vs. annuity payment calculator compares two payment options: receiving a lump sum today, investing it yourself, and living off the proceeds after paying income taxes; or receiving an annuity for a specific number of years and paying taxes each year. The calculator discounts the annuity to a present value so that you can compare which option is the better deal. Generally, the option with a higher present value is the better deal. The savings interest rate that you designate is used to calculate present value for the annuity payment option and is compounded monthly. The decision between cash up front and payments over time mostly depends on the interest rate that you can earn on money that you save and the difference between the lump sum amount and the annuity amount.
Next Steps
Fifth Third can help you reach your savings goals. Learn more about our savings accounts. Questions? Visit a branch, contact a financial advisor, or give us a call at 1-877-579-5353.
Additional Resources
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What are catch-up retirement contributions, and is it too late to get started? Here's an intro to catch-up contributions from Fifth Third Bank.
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Variable rate and fixed income annuities from Fifth Third Bank can help fulfill your long-term financial goals.
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As you plan for retirement, here are 6 retirement savings strategies you should consider when discussing retirement plans with your financial advisor.
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