How to Value a Pension in Net Worth: Simple Guide for Accurate Retirement Planning
Figuring out your pension's worth can seem daunting, but it's crucial for solid retirement planning. This guide breaks down how to calculate its value, helping you understand this significant part of your financial future. Estimating Your Pension's Current Value Your pension isn't a lump sum; it's a stream of future payments. To determine its current worth (present value), we need to estimate what those future payments are worth today. This is because money received in the future is worth less than money received today due to inflation and potential investment returns....