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Buy this service vs invest it yourself
Adjust the assumptions below to see how the two options compare over time.
Your assumptions
65
606570
87
7587100
5% real return, balanced 60/40
Invest the same $15,228 you'd spend on the buy-back.
Buy back service
$15,228
one-time cost
Monthly income+$114
Annual income+$1,368
Total income to age 87$31,464
- ✓ Guaranteed for life, no matter how long you live
- ✓ Indexed to inflation
- ✓ Survivor benefit included
Invest it yourself
$15,228
starting portfolio at 5% real return
Target monthly income$114/mo
Runs out at age81
Total income to age 87$22,809
- ○ Returns not guaranteed, depends on market
- ○ Can be depleted if you live longer than expected
- ○ No automatic survivor benefit
Cumulative income through retirement
The your pension keeps paying for life. The self-invested portfolio pays out until the balance hits zero.
Longevity risk: At a 5% real return, your $15,228 portfolio runs out at age 81, leaving 6 years of retirement with no income from this pot. The your pension keeps paying.
Income shortfall over your lifetime: $8,655.
This comparison is for education and is not personalized financial advice. Returns shown are real (after inflation) and constant; actual market returns vary year to year. Speak with a qualified advisor for your situation.