So remember you think you are guaranteed but honestly once the pensions were sold off they are no longer federally guaranteed it’s state regulatory guaranteed.Which is dependent on state .So NJ would be up to 250,000 .So if you have more your gambling.I believe.But here is one article https://www.americanretiree.com/post/verizon-retirees-object-to-5-9-billion-pension-spinoff
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Everyone's situation is different. When I left it would have taken 30 years of annuity payments to equal the lump sum amount so took the lump sum.
You can do pension estimates on the benefits site. They are pretty accurate.
I would take the annuity but worried a out the small survivor benefits
I would take the lump if it was higher, but when I can get 10k more a year by taking the annuity, why would I take the lump? If the lump was going to pay me what the annuity is, or at least within a couple grand I would take the lump. Not sure how they figure the lump, but it sure seems like it’s a low ball offer.
Wait another few years, the interest rates will be lower.
I'm taking the annuity, diversifying my portfolio. If you take the lump and the market goes down 30% that year, it will take a while to climb out of that hole. I think my advisor calculated the return on the annuity being 5%, which is basically guaranteed. On a sale, based on the past, the credit is mostly AA or better, I think one small participant has a lower rating. I thought they only sold pensions of those who already left? Maybe not. But sure, it will happen.
I expect most financial advisors to recommend the lump sum as they will get the managed commission. I like the idea of a monthly check and doubt Prudential will collapse. What are your thoughts?
Gatt rate is high right now affecting the lump sum, hopefully interest rates drop this year but I plan on taking the lump sum.
Moot point. We can't retire any way due to cost of post retirement, pre Medicare health insurance!
My financial advisor suggested lump sum and move to IRA, will get higher returns. Our Pension was sold and the guaranteed amount is low.***Please see a financial advisor as the person previously mentioned, the advice is dependant upon live style and funds available.
Everyone's situation is different and you are best served by speaking with a fiduciary advisor. I personally took the lump sum, but the PBGC rate was 0% at the time. I could do a better job investing those $ than the annuity would give me. Still, there are valid reasons why someone would want the annuity.