Hi, I am 52 and my wife is 48. I have a good chance of getting involuntarily separated from megacorp in December of this year.
I have been a longtime lurker of this board and have always planned on retiring by 55 or so. I have a decision to make regarding my pension if I do get the boot in December.
The current numbers are lump sum 426000 or 27324 per year. This number seems significantly better than any annuity I could purchase at this time. I am eligible for the group retiree insurance plan at a slightly reduced rate. Currently 950 per month, probably cheaper then I could get privately in NJ.
I believe I need about 80K per year to maintain my current lifestyle. In a pinch I could do with less, not sure how much less.
We currently have 1160000 in investments. Allocation is 57% stock, 27% bonds and 16% cash.
800k is in retirement accounts and 360k is in after tax.
My house is paid for worth approx 400k, but prop tax are $9500 per year.
My wife makes 40k per year and does not plan to leave her job for approx 3-5 years depending on how things go at work. Currently she enjoys her job and may work for a long time if it stays the same.
I suspect I will be unable to find a job in my field and if this is the case I would like the option of not working at all.
I have played with firecalc quite a bit and there does not seem to be a significant indicator on whether to go with the lump sum or annuity option. I realize I have quite a bit of uncertainty in my plans. The first decision I will have to make is whether or not to take the lumpsum or the annuity. What do you think?
Note that I asked a similar question years ago regarding my sister and the replies were very helpful. She ended up taking the lump sum and is doing quite well in her retirement so far at 52.
I have been a longtime lurker of this board and have always planned on retiring by 55 or so. I have a decision to make regarding my pension if I do get the boot in December.
The current numbers are lump sum 426000 or 27324 per year. This number seems significantly better than any annuity I could purchase at this time. I am eligible for the group retiree insurance plan at a slightly reduced rate. Currently 950 per month, probably cheaper then I could get privately in NJ.
I believe I need about 80K per year to maintain my current lifestyle. In a pinch I could do with less, not sure how much less.
We currently have 1160000 in investments. Allocation is 57% stock, 27% bonds and 16% cash.
800k is in retirement accounts and 360k is in after tax.
My house is paid for worth approx 400k, but prop tax are $9500 per year.
My wife makes 40k per year and does not plan to leave her job for approx 3-5 years depending on how things go at work. Currently she enjoys her job and may work for a long time if it stays the same.
I suspect I will be unable to find a job in my field and if this is the case I would like the option of not working at all.
I have played with firecalc quite a bit and there does not seem to be a significant indicator on whether to go with the lump sum or annuity option. I realize I have quite a bit of uncertainty in my plans. The first decision I will have to make is whether or not to take the lumpsum or the annuity. What do you think?
Note that I asked a similar question years ago regarding my sister and the replies were very helpful. She ended up taking the lump sum and is doing quite well in her retirement so far at 52.