I am just waiting to retire nut the interest rate is too high right now. The interest rate for the lump sum is high right now and I lose 45% of my lump sum. The predictions for the future rate is 3 or 2 percent in a few years. This will get me an additional 400k in my lump sum. I think there will be a lot of retirements in the next few years. So when you see the rate drop look at your lump sum payout. To all the oldies get ready to pull the trigger.
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Do what will make you happiest.
- No one can predict interest rates in the future - especially 2-3 years out.
- Interest rates since the financial crisis of 2008/9 until last year were extraordinarily low when looking at long history. Thoughts that those were normal are a form of recency bias. One has to ask what caused rates at those very low levels and will those macro economic conditions return. Likely not. Today’s interest rates are closer to the historical average.
- If we are heading into a period of stagflation due to tariffs like in the 1970’s, Fed Chairman Paul Volker sharply increased interest rates to break the inflation cycle. They didn’t decline to the levels like today until the late 1980’s.
Don’t waste your precious time awaiting something that you don’t have control over.
Got PIPed, took the PIL. Just got my pension payout now. Wish the interest rate was lower, but you know what?! Totally worth not being at that place. Now that I'm all paid out, time to make disparaging comments against the company in a public forum!
Good luck with that 😂
While it wasn’t a fun experience clearly those who were fired during COCID actually were lucky. Lump sum invested when stock prices were rock bottom. Many landed solid jobs in tech. I wish I had been fired during COVID!
Left 4 years ago ..interest rate 1.25%..
Keep waiting su-kers. Let your lives go by in daily misery while waiting for something out of your control. Good news is you have enough as is. Retire from this miserable Company and go enjoy your lives. There's something good waiting for you around the corner,go get it.
Interest rates do not drop as fast as you think. It may take five years for interest rates to get back to the 2020 global pandemic rate.