Compare returns from savings?

Telegraph_Sam

I was trying to work out if there is a clever way of comparing the % yield produced by investing a lump sum in the case of there being a return of capital at the end of the term with the case where there is no return of capital. Like taking out an annuity compared with opening a fixed rate savings account for the same investment.. Or the case that presents itself when the state pension offers you the choice of a lump sum in return for a decrease in regular payments.. I am struggling to come up with an answer but guess that more financially astute readers will be able to help!

coyrls

Generally you need to know when you are going to die to do this type of analysis.

georgehere

too many variables T_S ... sums of money, time, yields - with none of these nailed down, it's a very open ended question. You are absolutely correct in your thinking though - these are all variations on a theme. I am sure you have seen some of the questions here that talk about 'lump sum vs reduced payments' - it comes up a lot with teachers retiring, so you can likely compare those to your scenario (I have read at least 2 threads on that topic in recent posts here).
For any other comparisons, I am sure if you post the actual details, you'll get guidance on the maths. Unfortunately, the answer to your question is that rules of thumb don't work well with these types of calculations so there is no simple/clever way.