Can you list the years service and amount your lump sum retirement was and year retired?
28 replies (most recent on top)
@20d agree, just be careful on the type of annuity one gets.
@20c good for you. You’re one of the few that don’t!
@1f2 the lump sum is still the best option. The lump will never be as good as it was in 21 or 22 but the annuity never changes/no cola so take a portion of the lump to buy an annuity to bridge between retirement and social security and invest the rest
@205 I’ve been around for a while and came just after 2004, I don’t despise those people, good for them.
You’re not going to find many people here with a pension. It now represents less than 25% of the US salaried population. Many of the new experienced hire despise those that have been around since 2004 and earlier because they have a pension. Unfortunately the culture change that we’re experiencing is here to stay.
How many of you are keeping track of the lump sum option over the years? It seems to me that it is not worth it with the current payout. I’m thinking it is best to go with the monthly check.
Nice video explaining lump sums.
https://www.youtube.com/watch?v=UKyhTX9LQEA
If I'm not mistaken, the number of folks with salaried pension still working is down to 7-8K.
@dd spot on. I look at that site every few months. 2022 retirees were lucky. That was once in lifetime opportunity. I don’t think we’ll ever see that combo again.
@w8 wow!! Sorry to hear that. What is your plan when you’re ready? Take lump sum or go with the monthly pension?
My lump sum for 2026 is still less than what I had in 2022.
@qt Your financial management is quite sound, Sir. Congratulations!
@f4 You can retire with $1 million, but not in the US or Europe.
Retired in 2018. Lump was $1.2M with 27 years. Would have needed to be 20% more to equal the Pension payout (corporate interest rates are higher than T-Bill so lump was less). Took the pension because I already had over $2M in 401K etc. net worth is now over $5M and life is good.
@hs
My last post should state I am making an avg of 196% of my last year of salary, not 1.96%.
@f4
I have friends that are living off $1M. It can be done, but it is tough. They are forced to take SS at 62. The median retirement savings for households aged 65–74 is only $200,000, and for those 75+, it is $130,000.
I started drawing from my accounts 3 yrs ago with $2M pretty much even. For info, by taking the lump sum, the early retirement supplemental pay is factored into the total, you do not lose it. I did also do the optional contributory retirement immediately when I became eligible to.
For the past 3 yrs I have been making an average return of 1.96% of my last year's pre-retirement salary. We are debt free except for car lease payment 950.00. We live very well and have been able to actually grow our nest egg by 500k+. I will not be applying for SS until 67 or possibly even 70.
Ford has been VERY good to me. I have no complaints whatsoever.
Basic Info:
Approximately 1.8% of U.S. households have saved $2 million or more in retirement accounts, according to Employee Benefit Research Institute (EBRI) analysis of Federal Reserve data.
Key Data on High-Net-Worth Retirees:
$2 Million+ Savings: Roughly 1.8% of households reach this mark.
$1 Million+ Savings: About 4.7% of households have at least $1 million in retirement-specific accounts.
$3 Million+ Savings: Only 0.8% of households reach this level.
Investable Assets: When including investable assets (not just retirement accounts), 7% of households headed by someone 60 or older have at least $2 million.
@f4 you don’t. The ford GRP lump sum or monthly annuity should only be one part of your retirement income. I have more in my 401k than my lump sum estimated value. Anyone who started working in the late 90s and after should be very aware that you can’t rely on a company for retirement income, it’s just a bonus if it’s actually happens. You can’t rely on SS either.
If you max out your 401k pretax contribution every year from the day you start working, invest in a low cost index fund, you’ll be better off than most.
How do you retire off a million dollars now? That seems impossible.
Also people who left in 2022 with those lump sums need to include whether or not they were making the optional contributions to the GRP.
Anyway, 2022 was the culmination of many factors to result in a peak. Past performance is not an indicator of future gains.
@b5
Your lump sump likely would have been reduced to ~$750K if you had chosen to retire in 2023 vs. 2022. This is why so many retirement eligible folks chose to leave before the end of the year in 2022. If I had been eligible, I would have left in a heartbeat.
My lump sum decreased 33% from 2022 to 2023, and by the end of 2025, it had still not recovered to the 2022 value. I took mine before the end of 2025, as the 2026 lump sum amount would have decreased by another $50K.
2022 retired - 33.5 yrs - G8 - $1,221,000
At that time only needed make a 4.5% to equal what the annuity would have been.
It was a no brainer.
the higher the interest rate, the lower the lump sum...... This website (https://www.irs.gov/retirement-plans/minimum-present-value-segment-rates) and the rates in Aug of every year are used to determine the lump sum amounts for the coming year (e.g., Aug 2025 rates are used for Dec 2025 - Nov 2026 retirements and Aug 2024 is used for Dec 2024 - Nov 2025).
You must be someone recently separated and are shocked at how low the lump sum actually is. You aren't imagining it. It is. Its so bad that you're basically better off taking your pension as an annuity especially since there's a temporary uplift until you turn 62. Its pretty ridiculous.
32, $1.1M, 2022
I’d be happy to help. Can first share your SSN and your internet history for the last 10 yrs?
Why
You can use the pension calculator to customize this to your particular situation. You can also calculate it on your own using a formula from the IRS and current discount rates.
No.