The fed is expected to raise the interest rates tomorrow, will thay cause more attrition and early retirement or those who wanted to leave have already left the ship?
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And you still troll a layoffs site plagued with losers who have no life or prospects and are worried about layoffs? Wow. Must be a real happy, interesting and fulfilling retirement. I hope that I don't end up in that state one day, lol.
After you retire, you can make the annuity / lump sum choice anytime up until the annuity starts. Therefore, you cannot always equate rising interest rates with folks needing to retire in order to maximize their lump sum conversion. I choose to take my lump sum over 2 years after EOIing in 2016.
@3bkb, Uhhhh, Someone who can't afford to?
Critical thinking is not a strong suit on this site, obviously.
The Fed chairman just announced another .75 point increase yesterday, with more guaranteed in the next year. Who in their right mind over 60 would still be working, and literally watching their pensions evaporate right in front of them?
Yes, I think more will retire with the interest rates going up again. Sadly there are many who don’t watch the numbers and don’t realize that they are better off retiring now than working a few more years and retiring then. I’ve recently heard several colleagues say they were shocked when they finally talked to a financial planner and was told to get out asap.
@2bzo, Sounds like a good plan to me, have you picked a date yet?
The IRS segment rates have more than doubled in the past couple years from the 2% range to over 4%. They are currently higher than all rates running back to around 2009. As you know, the rates used are an average of the trailing months 3-5 so there is a lag between when rates are introduced and when people pull the trigger on the lump sum. Segment 2 is the critical one has jumped a whole point in the last two months, so this would be a good time to pull the trigger and avoid more bloodshed on the lump. No guarantee rates are going back down any time soon.
It's not for pathetic whining jealous losers on the laidoff losers site with no life, goals or purpose to decide when it's time for someone else to retire, I can assure you of that.
Makes no sense for a lifelonger in 60s to still be around. They are basically working for free since 2020 ! Could have easily got a package with a year's salary and wouldn't have to stick around and see the decline in their pension with rising interest rate. Yet they keep lingering around...wtf
The FED members have stated they will take the rate to 4% by the end of 2022 and hold it there for a year. After a year, maybe shorter, the FED will start lowering interest rates. If you are thinking of retiring why not wait until the FED lowers the interest rate again to maximize your lump sum. Oh, by the way, taking the interest rate to 4% and leaving it there for a year will have a huge negative impact on the economy, bonds, stocks, etc. However, everything will be blamed on Putin. The people that plan all this stuff out aren't stupid. Wake up.
did mine 2 years ago, but curious since no longer have access to calcs - If age ~60, grade ~24/25 - how much do you think pension lump sum would have dropped from 09/2020 to 9/2022, for worker ~30 years service?
If they're smart, they've been retired two years now... the rest should be cutting their (pension) losses as soon as possible.