Filing for retire. from Megacorp and Megacity

[Lakewood90712]

Filing this week for both, as will be 55 early next year. The Megacity is a DB with cola , about 27 % of final base pay. Med. insur. subsidy covers all but $300 per mo. of ppo premium. No lump sum offer.

The Megacorp DB pension is minimal ( about $430 /mo.) no survivor benefit , 18 years service, but separated from co. a long time ago. If offered a lump sum, what would be a fair amount , considering the males in my family usually lived to mid 80's. That would be to cover an assumed 30 years of non cola mo. benefits ?

Any thoughts if a lump sum is offered by Megacorp ?

 

[rodi]

Congrats on filing for retirement.

When I was weighing lump sum offers from megacorp I plugged in how much fixed annuity I could buy with the lump sum.... If the annuity is higher than the pension - take the lump sum. If the annuity is lower, - take it as a pension.

The lump sum would only buy an annuity that paid about 2/3's of the pension amount... so I left it pensionized. But that's just me... I didn't have another pension in the mix and wanted a third leg on my 3 legged stool... (SS, Pension, Investments) My pension leg is small... but it's guaranteed.