I saw that AT&T sent a memo to their employees warning them that they will lose up to 30% on their lump-sums due to rising interest rates. Will Allstate employees experience a similar drop in lump-sum value?
https://main.techstaffer.blog/en-us/latest/att-pension-drop-memo-for-allstate-employees
4 replies (most recent on top)
Market is down about 20% this year. What else would you expect.
Yes, this applies to any companies with a lump sum pension.
I also have been following the interest rates and my pension lump sum will fall by about 18 to 20% as well so I guess the article does apply.
Makes you wonder why Allstate is telling us this important information
I ran my numbers on the Allstate lump sum on the Final average pay formula and my lump sum does drop by 19%.
If I leave next year it is a substantial hit. Although I am not retiring I am locking in my higher Lump sum and then heading over to State Farm and work for another 2 years until my last kid gets off the payroll