I'm 55, and have over 31 years with the same company which qualifies me for full retirement benefits. I have a pension worth $430K that I can take as a monthly annuity paying $2100/Month with a 75% survivor benefit, but with no COLA, or I can take it as a lump sum.
If I do the lump sum, the 72T distribution (to avoid paying 10% early withdrawal penalty) is only about $1500 per month. I'm leaning towards the annuity, but the non-COLA'd aspect is troubling.
I also have a VA pension of $43K per year (tax free), and will begin receiving Army Reserve retirement of about $10K per month at age 60. Also I can start Social Security at age 62 with an estimated benefit of $17K per year.
Opinions please,.... Lump sum or annuity?
If I do the lump sum, the 72T distribution (to avoid paying 10% early withdrawal penalty) is only about $1500 per month. I'm leaning towards the annuity, but the non-COLA'd aspect is troubling.
I also have a VA pension of $43K per year (tax free), and will begin receiving Army Reserve retirement of about $10K per month at age 60. Also I can start Social Security at age 62 with an estimated benefit of $17K per year.
Opinions please,.... Lump sum or annuity?