Retirement income

Compare a lump-sum pension offer to the monthly annuity

Values the (optionally COLA-adjusted, optionally joint-and-survivor) pension stream at a discount rate, computes the implied return of taking the annuity versus the lump sum, and finds the nominal breakeven age. Reuses the npv-irr engine for the PV and internal-rate math. The longevity assumption is an input. Deterministic.

post/v1/pension/lump-sum-vs-annuity

Request

  • Base URL: https://api.numeratica.com
  • URL: https://api.numeratica.com/v1/pension/lump-sum-vs-annuity
  • Auth: one of:
    • HTTP bearer
    • API key in header X-API-Key

Request body

current_ageinteger required
lump_sum_offernumber required
monthly_pensionnumber required
cola_ratenumber

Annual pension increase.

discount_ratenumber required
end_ageinteger required

Primary longevity assumption.

survivor_pctnumber

Joint-and-survivor: fraction continued after end_age.

survivor_end_ageinteger

Survivor longevity (>= end_age).

Example request

{
  "current_age": 65,
  "lump_sum_offer": 300000,
  "monthly_pension": 2000,
  "discount_rate": 0.05,
  "end_age": 90
}

Response

Comparison

result_idstring
engine_versionstring
disclaimerstring

Example response

{
  "result_id": "pen_1a2b3c4d5e6f7a8b",
  "engine_version": "pension-1.0.0",
  "inputs": {
    "current_age": 65,
    "lump_sum_offer": 300000,
    "monthly_pension": 2000,
    "discount_rate": 0.05,
    "end_age": 90
  }
}

Changes

No recorded changes to this operation across all 1 revision of this API.