Grateful to have met the M75 rule and it sure would be nice to use that monthly pension benefit to supplement a lower paying role (and avoid a move) as I transition into retirement but worry about the long-term viability of the plan. Curious what others are thinking or doing.
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Agree annuities can be a scam and you need to shop carefully. But they can also be a intricate part of a successful retirement. It is important to have permanent income, which can be accomplished via Social Security and Annuities, to meet your daily needs, and savings to cover the unexpected, and more important, to have some fun in your retirement!
“Annuities are just another insurance scam.”
I agree that most are and what you describe is amongst the “scammy” ones.
An immediate or deferred income annuity is really like buying your own pension and most legit financial advisors would agree from what I’ve read and heard. There are lots of options you can layer on top (inflation-like adjustments but you start with a lower monthly payout) but I’m planning on keeping mine basic.
Take the lump sum and roll it into an IRA. Your monthly distribution can only be passed to your spouse when you die. If no spouse when you die the monthly distribution ends and does not pass on to your children (if any).
The monthly payment option is not indexed for inflation meaning no cost of living adjustment. You will lose 50% of your purchasing power in 18 years with 4% inflation. Take the lump sum and manage it for investment returns. The accounting formula used is the "Rule of 72" look it up.
I retired in September and rolled my Mobility Pension into an IRA rollover at fidelity. I am mostly investing in high yielding stocks for income. A lot of Baby Bonds and Preferred stocks paying 8 to 12%
Ask your union rep.
Annuities are just another insurance scam. They take your money and stick it in an index fund making 10% and pay you back at a rate of 2% in a best case scenario. Don't give a corporation a profit-driven interest in you dying young.
Once you are in the annuity AT&T is no longer involved and it is with an insurance company, you would be fine. Even if you use Fidelity to initiate it it is still with an insyrance company.
"Ask your manager"
Dude, what is with this? I mean it's not funny or clever or anything. It's weak. Come up with some new schtick, eh?
Thirteenth?
Imagine working all your life and saving enough to retire, but you never get to enjoy it, because you decided that you just had to have one more year.
I promise you, another 100k isn’t going to help you when you close your eyes for the last time.
And you’ll regret not retiring sooner so you could enjoy the last quality years doing what you put off your entire life because you had to work.
Ask your manager
Half the company is pension eligible.
You people need to stop working and go ride off into the sunset.
Why deal with this cr-p?
No one retires from ATT and goes broke. You have your pension, your 401k, and your home. Now go and live the rest of your life before you get sick and can’t enjoy any of it,
Yes people that are bad with money and tend to spend wildly should take the annuity IMO. A single person with no kids could consider it or a person that has a strong feeling they’ll live to 100.
Take the lump sum and splurge. You've earned it.
Take the lump, ALWAYS take the lump.....
But do not take it in the form of a check directly to you. (it will all be taxable in that year)
FIRST: decide what company, or companies you want to handle your IRA.
(I let Fidelity handle mine and they did a GREAT job handling the rollover)
Then, if you don't trust yourself you can search out insurance companies and decide which company,or companies you want to purchase your annuity from. You can put together your own annuity with better benefits than what the company gives.
Otherwise just invest your rolled over IRA however you would like and take distributions from that.
A lot of other factors but that is the basic.
ALWAYS take the lump, but study the options to avoid unwise taxable decisions, any good company can advise you.
The annuity is worse in every possible scenario. The only people that choose it are simply bad at math and have poor fiscal discipline, which is probably why they are broke in the first place.
Take the lump sum and purchase an immediate payout annuity with better numbers for beneficiaries.
I looked at this question and concluded the only time the annuity beat the lump sum was if you received it for 30 years or longer and if the average annual interest rate over that time was 2.5% or less.
Going to take the lump all day long and direct transfer roll into IRA or 401k.
I took the lump sum. I have a relative who lost their entire pension when their company filed for bankruptcy. I don’t trust T with my money and you shouldn’t either.
If you weren’t aware there’s already a lawsuit because of the shady company that is holding the accounts
I might have a different objective than you but I’m planning to take lump sum and purchase a joint Deferred Annuity or a QLAC from my IRA to coincide with starting Social Security (or later) to increase my guaranteed income amount to cover my essentials, better longevity insurance, and better survivor benefits.