Thread regarding Verizon Communications Inc. layoffs

@gt It's true that some are, but Verizon annuity is not inflation adjusted.

Best advice for OP is to find a financial advisor that is a fiduciary. One that you are comfortable with and trust. They will give you the best advice based on YOUR particular situation. For some, the lump sum is the best way to go, for others the annuity. Lump sums are taking a hit at the moment due to the interest rates (they haven't been conducive to a great lump sum since 2020/2021) so if you plan to go that way, you might want to defer initiating until the rates are better. Again, follow the advice of a trusted FA.

@fy Incorrect, there are inflation adjusted annuities out there.

Everyone’s situation is different. There are benefits to both. Don’t listen to people that say take the lump sum and run it may not always be the best choice for you especially if you want a steady guaranteed income stream each month and are weary of the stock market. I did very well with my 401k and rolled it into an IRA and opted for the monthly pension. I now how 3 streams of income, pension, S.S and IRA distribution

@b4 agreed, moved mine from Fidel. to another company's IRA and my money gained 30% in the first six months. Money is still working me for two years so far. I just don't check my balance everyday, that will drive you crazy as the market fluctuates too much. Best decision for me, your situation may vary.

Lump Sum, move to IRA(financial advisor).

Annuities are set monthly amount for the rest of your life, they do not adjust for inflation

@bj Annuities are a cyclic business. It all comes down to supply and demand. When there is high demand, they offer a lower return and vice-versa. The companies must maintain the fund at the same level over the long run though which requires steady new money into the fund. If they have to hike their rate at any given time to maintain that flow, they'll do it even if they take a temporary loss. You may just have to wait which means parking the cash somewhere until then. Of course, you need to able to fund your life otherwise until then and that means being prepared, not waiting until the day you get kicked to the curb

@bj They may be deliberately low balling you. Financial advisors, even the ones that claim to be fiduciaries want your lump sum so the can make that set annual percentage for managing portfolio. They make a small one time set amount for being the intermediary and selling the SPIA, single premium immediate annuity.

@b0 You’re the voice of reason! People that kick and stomp their feet because the pension got transferred to a highly rated insurance company haven’t done their homework on the PBGC! Anyone that’s been at Vz for 30 plus years knows that the company is no longer efficiently run. They have been delisted from the DOW.

@bj Then you have cr-ppy advisers! If you’re are talking about a single life annuity matching Vz’s then yes you probably won’t find one. If you’re talking about a survivor benefit they are comparable. I’m getting 7.34% on my lump from NY Lif*. That’s a 100% joint survivorship with 20 year certain. Guaranteed Life annuity even if I live to be 100 and if my wife survives me she continues to get the same amount. You have to weigh what you trust. For myself, I don’t trust the long term financial viability of Vz. And don’t be fooled by the fact that pensions are insured by the PBGC. That’s a joke. They are practically insolvent right now! If Vz were to petition the PBGC for a reduction in pension payouts they can reduce your pension all the way down to only 30% of what you were originally getting. I’ll trust a triple A rated insurance company with my money rather than having Vz being custodian of my pension. Or you can play the market with your money and collect a measly 4-5 % on your portfolio.

@OP If you are asking this right now, you aint ready to retire. You should already have this sh-t planned out.

Ooompa Loompa

Good luck finding an annuity that pays what ours does. I tried with 2 sets of advisors.

Lump sum.

You never know when the next rat CEO or government rule change will tank the pension.

Take the lump sum and find an annuity that fits your life plan, not theirs.

If your pension gets sold to prudential, consider yourself lucky. They are much more financially secure than VZ

Use the 6% rule for Annuity vs lump sum.

The lump sum decreases with your age also along with the gatt rate. At 55 it is say 350 by 65 it is almost half due to life expectancy. The monthly doesn't decrease. It su-ks but better than nothing

It's the million dollar question. My financial advisor said it likely depends on the interest rate at time of retirement because the lump grows when interest rate is low and shrinks when it's high. Where as, the monthly doesn't change.

It also depends on your age at time of collecting. You can do a calculator to find the break even point, and if you're still pretty yound and think you're health will last by the break even point, every month after that, you are collecting more than the annuity would give you.

The annuity will provide you guaranteed income for the rest of your life, it's like a 2nd Social Security check. I would take the annuity if I were you. With the lump sum, you risk the chance of losing it. If the lump sum is over 1 million, yes grab that. Most lump sums are under 375k these days which is not a lot of money. The annuity will be there until your last day.

@OP Not a cut and dry answer. It depends on a number of factors. Age, health, longevity, financial situation with spouse. If it is put in tax deferred accounts, RMDs need to be considered for future tax implications, including how much you pay for Medicare. RMDs come into play once you reach 73 or 75, depending on when you were born. Bottom line is everyone's financial and tax situation is different.

Everybody is different. Talk to your financial advisor. I would take the lump sum. But, some people can’t be trusted with that

Take your money and run.