ER'd 2 years ago with megacorp "exit plan" at 56. Have not started taking pension or lump sum yet as did not immediately need and monthly was growing at decent rate (approx 10% in first year). At about the 18 month mark, I learned megacorp adjusted the mortality tables used for the calc, which erased that 10% growth.
Pension at MC was always reflected as a lump sum every year, with interest and growth based on years of service and salary. Then at time of retirement, forecast into annuity, so not the lump sum "offer" often described.
So now wrestling with the decision of taking the $31K/yr non-cola pension or the $618K lump sum. As suggested in other threads, I did look on immediateannuities.com and to get the same 31K/yr would require just over $700K investment.
Will also point out this is the 100% survivor rate in both cases. DW is 60.
Pension fund is well funded with very solid company.
Lump sum represents approx 23% of total portfolio.
Thoughts welcomed....
Pension at MC was always reflected as a lump sum every year, with interest and growth based on years of service and salary. Then at time of retirement, forecast into annuity, so not the lump sum "offer" often described.
So now wrestling with the decision of taking the $31K/yr non-cola pension or the $618K lump sum. As suggested in other threads, I did look on immediateannuities.com and to get the same 31K/yr would require just over $700K investment.
Will also point out this is the 100% survivor rate in both cases. DW is 60.
Pension fund is well funded with very solid company.
Lump sum represents approx 23% of total portfolio.
Thoughts welcomed....