- 48% 5.26% 5.07%
Ouch.
22 replies (most recent on top)
You could take your potential 2022 lump sum and buy an annuity on the open market right now through Fidelity that pays approx 40% more than ATT’s current annuity (and it includes death benefits). On 1/1/23, the lump
Sum and the annuity will be in-sync again, but right now there is a major incongruence between current ATT Annuity and annuity that can be purchased at Fidelity with your lump sum.
My pension monthly annuity is same and not affected by rate change. No reason to panic. Who said lump sum is better? If it was your financial advisor then is time to fire him.
Don't forget about your ultra wealthy in-laws & rich aunts and uncles!
Pension should be viewed like social security. Its's an extra topping on your overall portfolio. Primary retirement funds need to come from brokerage link, company matching 401K, additional life insurance investments, Roth IRA, HSA, 529 and so on....
The pension isn't that big to begin with. If 29% causes you a hardship, you got far bigger problems.
Don't worry about the pension. Focus on your other retirement accounts, investments and real estate holdings.
I called Fidelity. #1 Asked why I can't run any calculations anymore and was told I have a complicated situation (she just read a scripted generic answer) #2 told them I was worried about my mobility pension and was given the minimum lump sum which matches what shows on the fidelity web site so no worries on it being impacted by rates so yahhhh!!! BellSouth pension looks pretty protected tooo.... double yah!!
I am Legacy T and compared my Nov 2021 rate to today's new released rate and my lump sum is dropping by 29%. My Legacy T co worker ran the numbers and is only seeing a 21% drop. Why are we different? We are both using the same rate change?
Several factors at play here: same job title? same age? same seniority? They all matter and could account for the difference
To: hey, how can I git a lump sum?
You have to get it the ole fashioned way, you have to earn it! Handouts will not be tolerated.
@nol+1jhcNWwV -- Could the 29% drop verus 21% drop be related to cumulative salary over your careers? your life expectancy versus your coworkers? your # of years of service versus your coworkers?
At the Fidelity website you can do an estimate of your lump using the 2021 rates and then if you poke around you can find an area you can click on to see the assumptions used to do the estimate.
And, really, if you have other questions, it's probably best to call Fidelity.
We gotta git out of this place if it's the last thing we ever do.
Hey, how do I get some lump sum?
Ok, so the comment related to life expectancy, if Fidelity is using a table that shows fewer remaining years than the IRS when calculating the Lump, then the lump amount will be less than if Fidelity used the (current/updated) IRS residual life expectancy, true?
On a serious non political note I have a question and maybe someone with knowledge has feedback.
I am Legacy T and compared my Nov 2021 rate to today's new released rate and my lump sum is dropping by 29%. My Legacy T co worker ran the numbers and is only seeing a 21% drop. Why are we different? We are both using the same rate change?
I would really appreciate some feedback
If you call Fidelity please DEMAND they clarify which Longevity Tables/Data are they using, and if not 2022 then why not and how to appeal that:
IRS RMD Table:
https://www.irahelp.com/slottreport/new-2022-irs-life-expectancy-tables-available-here
Single Life Life Expectancy Table:
https://www.fidelity.com/building-savings/learn-about-iras/irs-single-life-expectancy-table
or
https://www.irs.gov/publications/p590b#en_US_2021_publink100089977
or
https://www.irs.gov/pub/irs-pdf/p590b.pdf
Yes, and this time next year your lump sum will be down 50%. Gotta love it.
A third of my lump sum just vanished into thin air! Vaporized!
Just did the math, it looks like I'm going to lose close to 30% on my lump!
https://main.techstaffer.blog/minimum-present-value-segment-rates-att
This game is rigged and not in your favor. Get out while the gettin is good! OUCH!
This is tremendous news for Stinky! Fire people for free!
If of want to avoid a 30% cut in your lump, best put in your paperwork to Fidelity today! It may be too late already!
Leave Toxic-T NOW!
OUCH! Where did my lump sum go? I just worked the past year for free.
I went to the IRS site and techstaffer site for segment rates and my Fidelity calculation showed a 31% drop. Why is mine so big ?? Is this correct? I am L2 and 55 and 32yos
Any ideas
Was just going to post this but you beat me to it. My lump sum is down almost 30%. Glad I made the decision to pull the plug this year or could I say the decision was made for me