"I have an annuity but I need cash now."

[KeithB]

I just recently had this issue. I have an $80 per month pension available, and I wanted to just cash it out.

You have to choose 3 things:
Your expected interest over the long term - 3-5% probably to be conservative
How long you expect to live - 85 to 90 would be a safe bet
How much profit you want to give the folks buying the annuity. (20%?)

Then you simply use your favorite TVM software to calculate it. I happen to have the last "what if" I used:

N:360 (30 years - I am 64)
Pmt: -80
FV: 0
I%/yr: 10
P/yr: 12
C/yr: 12

The PV was $9116

I probably would have accepted anything over $7300.
But they didn't buy pensions, only annuities and structured settlements.

The pension company won't let you buy it out unless it is less than $1000.