ziggy29
Moderator Emeritus
Got a big packet in the mail from my first Megacorp, offering me a lump sum buyout of my tiny pension that I accrued before they froze it.
I was expecting this closer to when I turned 55 and would be eligible to start collecting. I was pretty sure I'd get one eventually, but I figured it would be closer to my eligibility age. (They must really want to get these off of their books!)
It's spreadsheet time for me. Right now my pension benefits (100% survivor option) are set to be about $251 per month at 55 (in November 2020) or $657 per month at 65 (in November 2030). The buyout offer is for $38,102, using an expected 5.35% overall expected interest rate over my lifetime.
They also have an option of taking a lump sum and immediately starting an annuity with monthly payments starting *now* for my lifetime. (This is $195 per month, no COLA kicker, for life starting in December 2012. I'm not inclined to go this route, but it's interesting that it's offered.)
This is a fairly tiny part of our overall retirement.
I was expecting this closer to when I turned 55 and would be eligible to start collecting. I was pretty sure I'd get one eventually, but I figured it would be closer to my eligibility age. (They must really want to get these off of their books!)
It's spreadsheet time for me. Right now my pension benefits (100% survivor option) are set to be about $251 per month at 55 (in November 2020) or $657 per month at 65 (in November 2030). The buyout offer is for $38,102, using an expected 5.35% overall expected interest rate over my lifetime.
They also have an option of taking a lump sum and immediately starting an annuity with monthly payments starting *now* for my lifetime. (This is $195 per month, no COLA kicker, for life starting in December 2012. I'm not inclined to go this route, but it's interesting that it's offered.)
This is a fairly tiny part of our overall retirement.
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