Well if your like me near retirement hopefully you have everything ready to go. In am stuck at the moment like a lot of other employees because of the high interest rates. Right now I would lose 35 to 45 % of my lump sum payout. If the rate drops in the next few years I will leave at that moment. Take a look at your lump sum payout projection mine has dropped because of the discount rate. It was at least double what it is now a few years ago. The problem is you need to leave when the rate is low enough because if you stay you will get stuck working. If you are piped while the rate is high you will lose a lot of the lump sum. It is like gambling if you stay too long you might have to stay a fight to keep your job until the rate is lower. Everyone in my situation think about the optimum time to leave on your own terms. Good luck to us all. If you are choosing the annuity this does not apply to you at all. Talk to a financial advisor and be ready to get out.
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@3rib+1tXy72s7 Yeah, not planning to work until I’m 65. It’s too easy to save money, live below my means, and retire early at this company.
Yes you have to weigh the ultimate payoff. You must be reasonable with life expectancy as well. I plan to die at 74 to 77 years. It is my destiny according to my parents deaths. So no 80 or 90 for me. So the lump sum is probably best. If your genetics shows a long life then the annuity might be best. Always remember d-mb luck it can get you. I knew a person who took the annuity because his parents lived into the nineties. He got pancreatic cancer at 72 and died within 4 months. He choose the full annuity without spouse or any garraunty payout. Exxon paid him 7 years from 65 to 72. They won. The difference between himself and his parents was the lifestyle. He ate american high fat diets while his parents ate old world food and worked outside. So the American diet and lifestyle shortened his retirement. Sometimes it is also luck. There was another who retired at 68. They died of a heart attack two years later. Their arteries were clear and had no existing conditions. It was a arterial spasm that closed the main coronay artery. Just bad luck.
No way I’d ever take the annuity. As others have said xom wins if you die early. No way I’m giving them anything after the cr-p I had to deal with from the bozo managers.
4q2020 was the lowest lump sum rate in 30 years. You will not see this rate for at least another decade. Talk to a financial advisor at one of the major retirement planning firms.
Don’t take financial advise from keyboard gen x warriors they struggle to walk and chew gum much less get to work on time. Hook up with a real financial advisor
You can retire right now, and defer your lumpsum to a future date. And that date that does not need to be defined at the time of retirement.
2020 was the prime year for lumping out.
Never get back there again.
@eeb+1tXy72s7. Boomer hater.
I know who you are.
Waiting for low interest rates for a bigger lump sum is a fool's game. If you don't like the lump sum, then take the pension and invest it while you're still working doing something you actually enjoy. If you or you spouse make it past 80 you win. If you don't then your kids lose a bit, I suppose, wahh
I was not old enough to retire leave. If the rate drops to 3 % I will take the lump sum. If not I will take the annuity. Either way I will leave. See ya su---r's.
You should have left 2-3 years ago. You worked a couple of years for salary but lost it in a lower lump sum pension. Interest rates will drop this year into next year but only about 1%.
With the discount rate as high as it is now, the. Company wants you to take the lump sum. The financial advisors want you to take it so you can pay them high fees. Don’t fall for it.
@kka+1 the higher the discount rate, the lower the lump sum and the better the annuity gets. Is, as you suggest, we ”trust you” and believe it is a lot more than 5%”, then you are arguing for taking the annuity.
Look at this site to see what the discount rates does.
https://bogartwealth.com/video/discount-rates-exxonmobil-lump-sum-may2023/
They have a lot of information about retirement. I learned from former employees that retired and their mistakes. It is all about having a good life after exxon and retirement.
It is not just 5.7 % they amortize it for the twenty years the would pay you out slowly till 83. It is a lot more than 5 percent trust me. Exxon would like you to take the annuity they win because if you die they only pay you a few years. I am not greedy but we all need to have enough to live on in retirement. If it was just 5 % I would retire ASAP or anytime I liked but it is a lot more trust me. Look at you lump sum payout and you will be surprised. Financial planners have tools to show you what your payout is at different rates. Educate yourselves about this and be ready. Do not wait until you are forced to leave and have a plan in place.
Always just hanging on for more. Clogging up the system so younger people can't advance. Everyone else is stuck because of boomers constant desire to never retire.
You may also delay taking it .
Take the annuity. Discount rate is 5.7% right now. If you could buy a risk free bond with a 5.7% interest rate and 30+ year term, wouldn’t you talk it. Annuity is the same thing. Life is short. Take it.