Early retirement offer

[anonymous]

If taking the lump sum, keep eye on modeler. The quarterly interest rate adjustment just took place yesterday and my lump sum up about 4% for the fourth quarter.

good point. My total increased 3.7% from September 30 target to October 30 target. This is the furthest into the future you can estimate given that July rates where just updated this week

 

[anonymous]

59yrs old. Can walk with lump sum of 1.4 with 401k of 1.7= 3.1 mil plus medical. I’d like to keep working, but can’t get pension without leaving. Thinking oncology may see headcount changes post COVID. Thoughts or advice ?

One of the problems for lump sum people who stay with Merck into 2021 and beyond is downside risk in the pension. As interest rates start to rise the lump sums will start to drop. That is anything you earned in the pension prior to 2020. Look at the modeler and read the fine print, it specifically mentions that a 1% increase in rates can equal a 20% drop in lump sum.

 

[anonymous]

Interest rates are the sole reason pension lump sums are what they are. My lump sum has gone up 33% since January 2019.