I know you can receive a lump sum payout if you leave the company before being retirement eligible. Do you know if you can just take the monthly payment instead of getting a lump sum check to reinvest?
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I resigned at 50 with less than 15 years of service. As I sit here looking at my pension election form I was given seven (7) options for receiving my pension, including the lump sum option. I believe someone mentioned below, that if you defer your pension benefit, the lump sum option disappears.
One time lump sum option only
Log into ExxonMobil Net Benefits to run your own calculations of different scenarios. You can take the cash but will have to pay huge penalty of 10% and taxes on it. Taking as cash now may put you into a higher tax bracket.
Contrary to post below, annuity can start before 65.
Suggest you contact Benefits Service and speak to a financial advisor to fully understand implications.
Can you cash it out and take a penalty, or does it have to be rolled into an IRA?
For non-retirees, the annuity starts at age 65.
Risk tolerance also needs to take into account the probability that EM continues to keep its side of annuity obligations into the future...Annuitant facebook pages are full of examples of the company changing benefits for retirees post-retirement
Good points on the risk tolerance. You just need to ask yourself what the steady payout covers. If it covers your mortgage, insurance, etc. then why not go for it! One less thing to think about.
Yes, you can either take an annuity or a lump sum. Most will take the lump sum and roll it into an IRA. The problem with an annuity to reinvest is that Inflation will eat it up. An annuity is not inflation adjusted. However, some people like the idea of a steady payout for a lifetime.
It’s all about the risk tolerance.