The 1Q27 lump sump will be 3.8% less than 4Q26.
If you are over 60, you will be working for free for Jan, Feb, and Mar. Further interest rate increases mean more months work for free.
Leave by Nov 30 and set Dec 1 as retirement commencement date.
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If interest rates increase each quarter, then your next 4 years will be volunteer work.
@OP I plan to stay to 65, been here since 1992 and had a great career. 4 more years to go.
Annuity is a valid consideration for anyone not looking to retire this year. If you already have a lot of cash to manage yourself (equities, 401k, IRA) it is a valid divestment.
Very specifically, annuity may work for you if:
- you see yourself being in good health
- you want spousal benefits (and have a spouse that isn’t good at managing money, even with a financial advisor.)
- you have young adult kids who may start begging for money and you tend to be soft on their requests (don’t pay for weddings out of retirement funds).
I’m actually a bit surprised everyone is so ‘all in’ lump sum. I’ve seen older people run out of their lump sums….especially after the financially responsible spouse passes.
Open to discussion.
Anybody choosing the annuity? If I’m managing 401ks and IRAs, why not have pension income be something I never have to worry about managing or outliving?
NIce try, Darren!
@ar that is not going to happen. There has been so much damage to infrastructure that we will be feeling the pain from this war for quite some time.
Need to get the “war” over and have this economy purring again by January .
I’m already hearing about people retiring this quarter.
Funny that people don’t run the numbers.