Deciding Between a Lump Sum or Monthly Pension Payments
Retirement planning was not always as complicated as it is today. There was a time when 30 years of service was rewarded with a golden watch and a lifetime pension. Today fewer and fewer employers are offering pensions and the ones who do are looking for ways to reduce the long-term obligations associated with pension plans. One of the strategies that employers are using to reduce these long-term obligations is lump sum buyouts.
A lump sum buyout is an offer from your employer of a one-time lump sum payment in lieu of monthly payments for life (and your spouse’s life if you select a spousal benefit option).
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