For those under 55 and leaving the company/severed, what do you do with your retirement money? Do you take the current commited value and convert to LIRA OR do you leave it there and take it as annuity in the future? Trying to understand your thought process and pros/cons.
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If you are 50+ you are near retirement eligible - stay put and wait till 55 and get your pension. Pension has “ad hoc” increases which from what I gathered is about 50% of inflation
I also took the lump sum via LIRA. It gives me more control of the funds and some potential upside.
The downside is that the company that administers the pension/LIRA payments is very slow and incompetent. But I guess that's a downside for either option.
I left in 2021 and took a lump sum of pension value into LIRA. Fast forward to today, it doubled its value in LIRA and still growing everyday.
If you have 5+ years until you retire, and are OK with having money in the market, you should almost always take the money and put it to work in the market (just dump into an index fund) unless you have virtually no risk tolerance and keep all your savings in cash. A fixed payment that is not indexed to inflation will be pretty much worthless in 15-20 years. Just my opinion.