# present value of pension

R

#### revheck

Can anyone point me to an online calculator or formula that estimates
the present value of a pension? The input would be current pension
credits,
based on age 65 retirement.

R

#### Ron Peterson

Can anyone point me to an online calculator or formula that estimates
the present value of a pension? The input would be current pension
credits,
based on age 65 retirement.
http://www.totalreturnannuities.com/ should meet your needs. For
example, in my state, a \$1,000/month annuity for a 65 year old male is
valued at \$151,172.

D

#### Dave Dodson

Ron said:
http://www.totalreturnannuities.com/ should meet your needs. For
example, in my state, a \$1,000/month annuity for a 65 year old male is
valued at \$151,172.
Just be sure to discount that back to your current age. For example, if
you are 45 and use a discount rate of 5%, the present value of that
\$1,000 per month at age 65 would be \$151,172*(1-0.05)^(65-45) =
\$54,193.

Dave

R

#### revheck

Just be sure to discount that back to your current age.

Yes, that was my point. Thanks.