With every passing year, more and more employers are deciding to offer lump-sum buyout offers to eradicate their books from the lengthy list of pensions they are on the hook for. Retirees and pre-retirees alike are getting lump-sum offers on a regular basis.
Is the lump-sum the way to go – or is it better to take lifetime income? What about taking the lump-sum and setting up an independent income plan with the assets? These questions are difficult to make. Here are some top questions to consider when making this choice:
- Why doesn’t your employer even offer a pension?
- Why would the employer decide to offer you so much money to buy you out of your pension payments?
- How did they come up with the dollar amount in the lump sum that they are offering?
These questions and more will be answered this week on Income For Life Radio, so make sure to tune in this Sunday or watch for the podcast next week as we discuss ‘Choosing Between the Lump Sum and a Pension‘.
Matt Nelson, president and host of Income For Life Radio
Income For Life LLC