Originally Posted by Fleur58
I have a teensy weensy GE pension coming to me from a company that was bought by GE in the 90s. I worked at the company for only 6 years. So I'll get $465 a month in 5 year when I am 65. Since its equals $5580 a year, I wonder if I should accept a lump sum if offered if the company is on shaky ground with its pension funding?
I had something similar, and took the buyout offer. In my case, I had worked for McDonnell-Douglas, and then Boeing, once they took us over. I had something like 5 1/2 years in...I remember it wasn't quite 6. That got me a pension of $349.21 per month, when I turn 65. So, in 2035, I'd start getting it. It wasn't indexed to inflation though...it would just be that amount.
Back in 2014, they offered a buyout, and I took it. I got a little over $14,000. It might not have been the best decision in the world, but I figured I'd rather get the money now, and be responsible for it, rather than have their pension plan go through some kind of turmoil.
FWIW, I ran the numbers, and I'd have to generate a return of around 10.5% each year, to get $14K on 1/1/15 up to $103,127 by 1/1/2035. That's about what I'd need for a 4% SWR to generate roughly $349.21/mo. Realistically, that probably won't happen. But, who knows what would happen to the terms of that pension over time, either?