When faced with a layoff or early retirement, this can be the most difficult decision.  We’ve helped hundreds of clients weigh the options, so here are some questions that may be of help to you.

Is my former employer financially stable and is the pension well-funded? When companies have major layoffs, they’re trying to stop bleeding cash.  Pensions are rarely completely funded and rely on the continued profitability of the company.

Do I take a reduced benefit to provide for my spouse? Consider your family longevity and personal health habits.  If you take the larger amount upfront for the retiree, will you save any of the monthly payments?  Women typically live longer and in 25% of couples aged 65, one spouse will live to 95.

How Do I Evaluate the Lump-Sum Option?  Many employers offer a Lump-Sum Benefit to “buy-out” their pension obligation.  Factors to consider include your personal health status & family longevity, interest rates and inflation, your current situation, the number of years until benefit eligibility, and your feelings about leaving assets to your heirs. 

Could I generate more income by investing the money?

You’re invited to schedule a complimentary consultation if you want help evaluating your personal situation.

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