Should I Take the Lump Sum or Pension?

by | May 6, 2022

My brother has worked for the same company for over twenty years.  Now that is something you don’t see much of anymore.  The average person now switches jobs every four years.     

He plans on calling it quits soon and one of his benefits includes a pension.  Who wouldn’t want a guaranteed lifetime income stream?  As it turns out, there are some scenarios where you might want to opt-out of the pension, take a lump sum distribution, and roll the proceeds to your IRA.

Flowcharts are a great starting point to help navigate complex financial planning questions such as these.  They simplify the complicated and ensure that you are asking the right questions.   

Should I take my Pension as a Lump-Sum Flowchart? Download Flowchart

Only 16% of Fortune 500 companies now offer pensions.  Consider yourself lucky if you still have access to one.  Your decision to take the pension or lump sum is irrevocable so carefully review your options before making a decision.  

If you don’t have the time or expertise to do the analysis then our “Personal CFO” services might be of interest to you.  We help physicians and executives proactively plan for their retirement and simplify their financial life.    

If you want a second opinion then contact us here.