Lifetime Income Simulator

Simulate insurance company proposals to convert your accumulated wealth (accumulated in pension or investments) into a monthly lifetime income paid until the end of your life. Compare the impact of actuarial survival tables.

Quick Profiles:

Retiree 65 years ($500,000) Early Retirement 55 years ($1,000,000) Late Retirement 75 years ($300,000)

Actuarial Data

Wealth for Conversion

Amount to be delivered to the insurer (pension or assets).

Beneficiary's Age

years

Your age at the time of benefit payment.

Gender Determines life expectancy in actuarial tables.

Mortality Table Actuarial table regulated by SUSEP.

Real Interest Rate of the Proposal

% p.a.

Real interest rate promised by the insurer above inflation.

Fill in the data and click on Simulate Income to project the lifetime benefit.

$0.00

Estimated Monthly Lifetime Income

0.0 years

Life Expectancy

$0.00

Expected Total Received (USD)

0.00%

Equivalent Annual Withdrawal Rate

$0.00

4% Rule Withdrawal (Ref)

0.00%

Monthly Annuity (% of Capital)

Actuarial Survival Probability by Age (%)

Accumulation and Enjoyment Comparison Over Time

Age Reached	Probability of Being Alive	Monthly Income	Accumulated Total Received	Theoretical Capital Amortization

What is Lifetime Income (Annuity) and how does it work?

Lifetime Income (or Annuity in international financial literature) is an actuarial contract closed with an insurer. The investor delivers the accumulated wealth in pension (PGBL/VGBL) or investments in exchange for a legal guarantee: receiving a fixed monthly salary corrected by inflation for the rest of their life, regardless of how many years they live.

The trade-off of Lifetime Income: Security vs. Legacy

The hiring of a common lifetime income has profound implications for inheritance:

No Refund / No Inheritance: In the classic lifetime income modality, upon death, the payment ceases immediately and the remaining wealth stays with the insurer to finance the "mutualism" (people who live long and continue receiving). Heirs receive nothing.
Longevity Risk Mitigation: It is the maximum financial protection tool for those who fear surviving their own money (living until 95 or 100 years old with an empty investment portfolio). The insurer assumes 100% of this risk.

How is the monthly income calculated?

The insurer uses a Mortality Table (such as the BR-EMS regulated by SUSEP) to predict the average life expectancy of the group based on age and gender. It discounts the total value of the wealth by an actuarial factor that incorporates the guaranteed real interest rate. Older individuals receive considerably higher monthly annuities, since their life expectancy is lower.

Frequently Asked Questions

Yes, insurers offer special clauses that can be hired: 1) Reversible Lifetime Income to spouse/beneficiary: if the holder dies, the spouse continues receiving a percentage of the salary (e.g., 50% or 100%); 2) Lifetime Income with guaranteed term: if the holder dies within the first 10 or 15 years of the contract, payments continue for the beneficiaries until the end of the agreed term. Note that these additional coverages significantly reduce the amount of the initial monthly income received.

Statistically, women have a higher actuarial life expectancy than men (they live on average 4 to 6 years longer). Therefore, the actuarial tables dilute the woman's wealth over a longer expected payment period, generating slightly lower monthly installments to ensure the plan's solvency in the long term.

It depends on the profile and life objectives. If you prioritize leaving an inheritance for children and spouse, it is preferable to keep the wealth invested in liquid assets and make moderate withdrawals (4% Rule or safe drawdown). If you have no heirs, desire absolute financial security, and want to enjoy the highest possible monthly consumption rate, converting to Lifetime Income can be very advantageous, as the insurer dilutes the entire principal, which you cannot do alone without risk of depleting the account.