When your lump sum goes down because you had another birthday, does it take a hit all at once in the month of the birthday, or does it go down gradually each month leading up to the birthday. I guess the reason for the question is that when deciding to retire, does it make a great deal of difference or not to try and get out just before you are about to turn a year older? Thanks in advance for your opinions.
6 replies (most recent on top)
@fbk LET US TALK PLEASE
It's funny how quickly these questions get answered on this site.
imagine asking this from HR
Your lump sum is still going up because the interest rates are still going down. With stable interest rates, the mortality tables would not be your friend.
- xhu, I'm 59 and my lump is still going up each month.
But keep posting on topics on which you are ignorant. Anyone stupid enough to come here with a question on any important topic deserves what he or she gets.
Once you turn 55 your LUMP SUM value will go down each month. the older you get its goes down a little more each month... but yes a birthday will accelerate your monthly loss.
The age factor is pro-rated, (interpolated).
Refer to page 26, 27 of the associate pension spd.