EM "alumni" here. Received docs for a "one time" lump sum pension cash out.
I'm torn on this. Seems marginally better to not take the lump sum - between amount paid and for tax purposes, but not sure EM will be around in 25+ years with sufficient funds to cover a pension.
@4ifr+1gSywoFI
You can roll it over to a 401k or IRA without paying any tax.
OP seems to be talking about the "one time lump sum" former EM employees have to decide by mid-June. If OP is < 59.5 and a non-retiree, doesn't it mean 10% penalty and marginal income tax at highest bracket to take the lump sum now?
NPV, take the money and run (hide). Odds are, you will die before you receive the equivalent in annuity and XOM counts on that so they don't have to pay out. More money for Darren.
Well, if you may have a rocky marriage, the annuity is the right way to go. Non-EM spouse will find the hoops to jump through are too much and just give up on it and focus on Savings Plan.
Experience talking here. It worked out great. Ex spouse blew through the money and I still have my monthly $6k.
Also, back at work as a contractor living well while other is living with family.
Ask yourself ”Why would you trust xom to handle your retirement?” The answer is take the lump!
Maybe you should read other posts here regarding this topic. It's been discussed hundreds of times.
You left well before retirement? Absolutely take the lump sum and invest it yourself.