Don’t start this up again... there are already long contentious threads covering this...just search. The bottom line is an annuity might make some feel comforted but it is always a bad choice financially. I just ran my numbers the other day again on Chevron’s calculator. I am 60. If I took the annuity I would be 80 before they even just returned my lump sum to me. If I lived to 100 they would pay out twice my lump sum, which would be a 100% return over 40 years or about 2.5% return per year. That’s not great, and that’s assuming I live to 100. If I die before 80 I don’t even get the original value of the lump returned! Plus there is not inflation protection. A 2.5% return over 40 years might not even be enough to preserve value let alone provide any gains.
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Depends on your current financial situation. If you have enough money for a few years, to pay rent/mortgage/property tax/car insurance/college tuition/food/water/electric/phone/tv/loans/credit card/health insurance/etc. and all the other stuff, then take the lump sum - hopefully, the economy will get better in five years.
If you only have zero to six months of emergency fund, then take the annuity. It will keep you from sinking and will still be able to sleep.
But remember, pension annuity is not guaranteed monthly amount, since the company can change pension rules any time they want. My company has done this. Where the lump sum, you put it into IRA and invest but could end up with a loss as well, depending on the economy when you are ready to take out the money.
Ask yourself will you be able to pay the bills for the next few years off of your savings if you don't find a job for a few years. At this point, more and more people are loosing their jobs instead of finding a job. Wear a mask, and social distance if you want the economy to improve and hopefully we can all get our jobs back. Be Safe!
No matter the country’s economic circumstances, the best choice is still and will always be a personal one to make, all based on your own financial and health situation.
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