Strategy

Considerations for a Lump Sum Pension Distribution

Co-Author(s):  

In recent years, many employees have been presented with offers by their employer or former employer for a lump sum pension distribution. This irrevocable decision should not be taken lightly, and careful analysis should be performed.

Look before you leap, items to consider:
  • Are you planning on the income for your retirement or would you like to leave the funds to your estate?
  • What interest rate is the company using to calculate your lump sum?
  • What is your current health situation?
  • Consider your spouse/life partner?
  • What is the financial condition of the company/pension plan?
  • Is your monthly pension benefit fully insured by the Pension Benefit Guaranty Corporation? (PBGC is an independent federal agency that pays benefits to participants of failed plans.)
  • Is the plan a single employer or multi-employer plan?
  • Does the monthly benefit index for inflation?
Consult a Fiduciary Advisor

Every situation is unique and requires objective analysis. Our team has extensive experience evaluating pension plans and we understand the complexities and nuances of many public and private plans. Contact us today for a complimentary evaluation of your plan.

Empowering clients with transparent and objective advice to make better financial decisions and embrace a rewarding life.

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