I was surplused and have 10 years before retirement. I'm not making any changes to the pension and plan to take the monthly annuity when I reach retirement age. There is some risk but I have plenty saved in 401k and other retirement accounts. I think I'll live long enough to beat the lump sum payout and/or survivors benefit.
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Where did you get you insight into how long you'll live?
Recently left and rolled mine into an IRA a few months back. I don't trust leving it under their care. Mine was cash balance plan tho.
Lump sum is fine if not taking it now and you also do not have a lump sum impacted by interest rates. If you do have a lump sum impacted by interest rates and you plan to retire near-term unfortunately it is bad timing with these current interest rates.
I was just surplussed in May and I had a financial advisor lined up and took out the pension as a lump sum and 401k as soon as I could and rolled it all over. It was pretty painless. Just met with the Fidelity people a few times and then a call with them and the advisor, signed the paperwork and they issued the check.
There are pension vs lump sum calculation apps/websites out there to help you make an informed decision, based on the numbers only. The are other things to factor in too, as has been previously pointed out.
you need to take whatever you can now and spend it asap while it is still worth something
I heard there is a law that requires 12–mo notice for any changes to the pension plan. That would provide an opportunity to jump.
Pension is not a guarentee. It can go away and has for large companies in the past. Move the lump to an IRA and let it make money. It’s an easy choice.
Most people that take the lump sum really shouldn't. They have no idea what to do with the money. They put it in some safe investment and get 1% or 2%. They don't know how much they are losing out by taking the lump sum.
"I heard a rumor starting 2025 lumpsum may no longer be a possibility........This will get the pension off their books and your pension is no longer protected by the Pension Guarantee act."
Uhhhh. The lump sum is how they get the pension off their books.
i took lump sum. be aggressive, conservative or hybrid . 'Financial advisors' (sales) are subject to market risk as well.
“I heard a rumor starting 2025 lump sum may no longer be a possibility.”
IMHO This is something the company would have to tell us in advance. Otherwise you can imagine the class action suits that would spring up.
Particularly for someone who seems capable of saving, investing, and building some wealth, sounds like a d-mb move to me.
I heard a rumor starting 2025 lumpsum may no longer be a possibility. If you stick with the annuity, AT&T will sell it to Athene like they did to 96,000 retired employees in 2023 so they don't have to fund the pension. This will get the pension off their books and your pension is no longer protected by the Pension Guarantee act.
As soon as you said you’re taking the annuity it instantly made me think you’re not very smart.
Lump sum is the only option anyone should consider. Flip it into an IRA stat....
‘Just keep in mind that ATT is selling the pension plans to 3rd party companies, which may include companies outside the US that are not subject to the 2006 PPA.“
You need to heed this advise. I want the fixed pension payments for life too, but this ain’t military retirement pay. They can and will sc--w you over in the next 10 yrs or less. Just like when they peeled back benefits, they’ll hit you with the ‘didn’t you read the fine print?’.
If you take stream payments, if this the same AT&T pension plan I've heard of, there is no "cost of living" increases in it.
Meanwhile, there is a Federal government that is accruing deficits at a reckless pace, with no way to pay for these deficits besides inflating them away.
But, take the lump sum, and it better be in something that beats inflation.
Just keep in mind that ATT is selling the pension plans to 3rd party companies, which may include companies outside the US that are not subject to the 2006 PPA.
Lump sum - final answer