Interest rates at near 10 year highs. Something to consider if you take the Pension lump sum.
7 replies (most recent on top)
Take the lump sum. The things I could do with all that money sitting in my account.
A .25 point won’t make more then I can do in a month. Don’t wait just take it you your eligible like me. Pulled it all and into the IRA it’s going
Lump sum pension is always a bad idea for a Bellhead. We're not risk takers. We won't beat the market returns and stand to lose one thing we can count on. A guaranteed check every month.
"Not all pensions from ATT are tied to the interest rate. It depends which company your pension was initiated."
Exactly. Management Cash Balance pensions and mobility management pensions, for example, are not impacted by interest rates. There is a lot of false information being spread about interest rates and people panicking and making decisions based upon that misinformation. Find your Pension Plan SPD (Summary Plan Description) which you most likely can find on Netbenefits links on the Fidelity web site, and make sure to understand what your pension plan provides, if you are lucky enough to even have a pension.
My cash balance pension is not impacted by interest rates in that way. It is what it is.
If you're Mobility Management and have a pension, neither is yours.
There are many different pension plans, educate yourself.
To the person calling the OP d-u-m-b --- he's correct.
For those that have pensions tied to interest rates-- the lump payout has an inverse relationship. Higher rates = lower payout. Lower rates = higher payout
Who is this FA posting it? Hopefully your FA is not that d-mb.
Not all pensions from ATT are tied to the interest rate. It depends which company your pension was initiated.