Although increasingly rare, employer pensions can make up a considerable portion of your expected retirement benefits.
Whether you are nearing retirement or are already receiving ongoing pension payments, you may have the option to choose a lump sum distribution/buyout instead of a lifetime stream of payments. Several factors must be analyzed in order to determine what course is best for you, your family and your unique circumstances.
This flowchart helps guide you your pension options.:
- Life expectancy considerations
- Viability of pension plan
- Risk tolerance and need for guaranteed income
- Wealth transfer considerations
- Lifetime income options