Home  ➔ Calculators  ➔ retirement  ➔ Pension vs 401(k) Comparison Calculator

Pension vs 401(k) Comparison Calculator

Compare lifetime retirement wealth from a defined benefit pension vs a 401(k) defined contribution plan.

Calculation Inputs

Calculation Results

📊

Enter inputs on the left and click Calculate to view results.

Formula & Methodology

Pension Total = Annual × Years; 401k Annual = Balance × Withdrawal Rate

Pensions offer guaranteed lifetime income but no flexibility. 401(k)s offer flexibility but carry longevity risk.

Frequently Asked Questions

Are pensions better than 401(k)s?

Pensions are valuable for lifetime income security but can't be passed to heirs as easily. 401(k)s offer more flexibility and survivor benefits.