Anonymous
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Anonymous
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If interest rates climb, the lump sum on the annuity goes DOWN! Does anyone know by how much? With each percentage point? Will you retire early just to get a higher pension payout? Serious replies only.
This government site has helpful calculators - including one for rising/falling rates. Google 'interest rates and pension payments' to read business articles about it but DO NOT make a lump sum decision without an investment advisor - preferably one who works on a percentage basis versus a transactional one. Check the AARP site for help with that (I'm not joking).
http://m.pbgc.gov/pages.html?jsp=wr&lp=pages&url=http://www.pbgc.gov/prac/interest.html
Good luck!
If interest rates climb, the lump sum on the annuity goes DOWN! Does anyone know by how much? With each percentage point? Will you retire early just to get a higher pension payout? Serious replies only.
What happens if you just leave it in as a regular pension payout?
To anyone in this situation, please start your research now, BEFORE you get offered the package (even if you're hoping for it). This is an extremely complex area of personal finance and either the jubilation of being freed from Merck early or the sting of being shown the door will invoke a powerful emotional reaction. These decisions need to made with a clear head and with knowledge of all possible scenarios.
It's easy to say 'FU Merck, give me my money!' but be sure you have an impartial view or advisor to be sure you maximize your payout. Making a mistake in this area will be devastating as you are likely not to either participate in another pension if you continue to work or make up lost ground through earnings or investments.
What's the chances of losing what you have by keeping it in the regular company pension?
Will the company really collapse causing us to lose it all? I think that would need to happen...
I always play things safe....in this case I don't think you can buy an annuity for life anywhere with a transfer of the payout.....
If I'm wrong chime in..
You need to be a wealthy person to take ss at 62....because you can only make 14K a year salary in another job without a big ding of giving back the money!
Who can live on 1000 a month ss and 14K more a year?! Unless you've been here years and have a big pension you just cant do it...you really must try to work as long as you can and take ss at 66,67 or 70. My goal is at least 80 workin' and goin' strong!
Not too long ago, I heard somebody say "70 is the new 65." Seemed to me to be true. In my if I'm lucky, case 70 might come and go, and I'll still be working. Only good thing about that is I'd be beyond my Full Retirement Age and ss wont care how much money I make.
Suze Orman says to take the SS at 66 or 70 mainly because people are living so much longer and one receives a lot more vs 62. As for myself will get out at 62, take SS at 66 and not touch 401K money until 70. That is my plan but I am single and will do what I want when I want. Companies are opting out of the lump sum because they do not want to put out the large amount period. And the rate things are going in this world probably some need to borrow from Peter to pay Paul.