Another pension vs lump sum thread.

[SunnyOne]

Thank you for the additional feedback - that's what I was thinking - also maybe they'll come back with better offers down the road.

I do have heirs, but they are already more than well provided for elsewhere, so I am more concerned about my own longevity and livelihood.

I am reminded of my mother's cousin who has a dark sense of humor. She says "when I die, I am leaving my homes, vehicles and belongings to my children. If there is a dollar leftover, I miscalculated."

I'm not that dark lol.

Thanks again, Tres

 

[rodi]

Update on my situation - I got the mailed package today.

It looks like this only affects my older, smaller, traditional pension. Previous to this offer you could start an annuity at age 55 or older. No lump sum offer. Now they are offering the option to
1) take a lump sum now (with caveats)
2) start annuity now (I'm 53, so it would be starting it before age 55).
3) start it sometime in the future - same as before.

It's not a huge pension or lump sum. The lump sum is worth $22015, the annuity started now would pay $115/month. Neither is life changing. (Nor did I expect them to be.)
For comparison - the lump sum would buy an annuity that pays $91/month. (80% of the one I could get through the pension program if I started it now. Comparing apples to apples - both are based on my age, my husbands age, and 100% joint survivorship)

I think I'm going to let it ride - along with my other pension from the parent corporation that acquired the original company (and it's pension). The lump sums aren't big enough to entice me to take on the risk - when I can have a small portion of my retirement stream annuitized at better rates than I can purchase.