An option to take a lump sum pension payment is typically offered at the time you retire. However, today companies are offering a lump sum payment to those already retired and receiving a monthly pension check. While this can help the company save a lot of money, it causes a real life problem for the individuals who must make the decision whether to take the lump sum or continue with a monthly check amount that may be less than what they have been getting.
There are many factors to take into consideration and since your decision can affect your financial well-being for the rest of your life, it cannot be made without careful thought. Here is a list of the most common concerns and questions you should consider before making your decision:
- Will it provide the monthly income I will need for the rest of my life?
- What about my health?
- Will my spouse continue to get the income if I pass away?
- How much income do I need every month?
- What if I need more or have an emergency?
- Are there taxes to consider?
- Do I want to control and own this money I worked for all those years?
- Is there some way something could pass on to my children?
- If I stay with the monthly check, could this happen again?
- Finally, the biggest question of all, “What do I do with it?”
Everyone’s personal situation is different so there is no “one size fits all” answer. It is not a decision to make until you feel you have given careful and thorough thought to how it impacts every financial part of your life.
This is the time in your life when you need to find someone who can provide sound advice, listen carefully to your concerns, and answer all your questions using words you understand. That’s where Centier can help. There are far more options available for you to consider and it is worth while to find out as much as you can so you can feel confident about your decision. Come in for a cup of coffee, sit down, and let’s talk about it.
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