ziggy29
Moderator Emeritus
There are other factors, for sure. One factor for me in turning down the buyout offer was that I like the three legged stool concept of retirement and this pension is the only (small) DB pension leg we have. Secondly, they offered about $31K as a buyout at a time when an SPIA with similar terms would have cost $89K.The monthly or lump sum decision involves many factors. One I did not see mentioned is that by taking the lump sum you assume the risk of managing that money, and as one ages the risk of being scammed out of it increases. By contrast, taking monthly payments means someone else has the management risk. Monthly payments are more difficult to scam from an older person because the scam needs to be repeated monthly.
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