Although increasingly rare, employer pensions can make up a considerable portion of your expected retirement benefits.
Whether you are nearing retirement or are already receiving ongoing pension payments, you may have the option to choose a lump sum distribution/buyout instead of a lifetime stream of payments. Several factors must be analyzed in order to determine what course is best for you and your unique circumstances.
This flowchart serves as a guide for you as you consider your pension options. It covers:
- Life expectancy considerations
- Viability of pension plan
- Risk tolerance and need for guaranteed income
- Wealth transfer considerations
- Lifetime income options