Think of it kind of like a mortgage. At current interest rates, how much money must be in the account on the day you begin collecting to pay that benefit (mortgage style from interest and principle) for your life expectancy.And then if the funds were paid in full today, how much would be deposited today to grow to the needed amount (using compound interest) on your first payment date.It is fairly straight forward to set up a spreadsheet in say Excel to do this calculation using likely interest rates. It's a two stage calculation. An accumulation stage and a payout stage.
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