People often need annuity present values for death and divorce.  There are other cases such as verifying the values of retirement benefits some business uses.  If you do not know whether you need an individualized annuity valuation, just ask.

The tables on this page may help you estimate the values you need to know in very simple circumstances.  If you find the value is large enough, you really should obtain an accurate estimate from an actuary.  Of course, we suggest that you e-mail, write or telephone us but you may also look in your telephone directory under "Actuaries." 

The table below illustrates annuity present values.  The typical problem is to determine a fair present value for a retirement annuity on an individual.  This value will be divided by 2 (two) in a typical property settlement for divorce or where the spouse's interest is passed to another through a will.  This table shows the present value of an annuity paying $100 per month to a male whose current age is known (and between 25 and 104).  Annuity present values on female lives or joint annuities will be different.  The entries for ages 65 and over reflect a reduction for the benefits already paid beginning at age 65.

A very important problem is determining the exact interest of the spouse (which may be something other than half).  This can be complicated.  Also, there may be a need to estimate future salary adjustments on a projected monthly pension benefit.   Vesting can also play a role.  Rather than bog you down in the complexity, let us consider two simple cases:  a deferred annuity and a retiree.  Again, you can use this table to get an idea of the amounts involved but you should find an actuary for reliable figures.

How to use this table:

Examples:

1)  Suppose we have a person age 40 who expects to receive $355 per month at age 65.

Looking down the table to the age 40 row, we see that the 6% number is 3829.15.

The annuity value is then 3829.15 * 355 / 100 = $13,593.48.

2)  Suppose we have a person age 72 receiving $1,453.75 per month.

Looking down the table to the age 72 row, we see that the 6% number is 11276.19.

The annuity value is then 11276.19 * 1453.75 / 100 = $163,927.61.

Jump to:  25    35   45    55   65    75   85    95

Present Values of $100 Per Month Beginning At Age 65

Using Various Discount Rates

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Notes:  This table was calculated using the 1983 Group Annuity Mortality (male) table with mortality improvement projection.  Some actuaries may recommend a different table or an interest rate not shown.  Actuaries often have good reasons for the tables and interest rates they recommend and you should inquire.   While different mortality tables produce different results, many actuaries tend to choose tables that give values reasonably close to these.  Much larger differences come from different interest rates.

The "annuity form" illustrated in this table is a single life annuity of $100 per month beginning at age 65.  Many other annuity forms exist and we regularly quote other forms.  Annuity present values for female lives will be somewhat higher than for male lives.

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Last modified: July 21, 2001