Are you eligible for a traditional pension? It’s probably a good idea to keep it to yourself. Retirees whose portfolios have been battered by the bear market would dearly love to get a monthly check for the rest of their lives.
But many employers that provide defined-benefit pensions offer employees the ability to take their pension as a lump sum instead of an annuity. Employers like this option because it gets the pension liability off their books, and some retirees prefer the flexibility a lump sum provides.
If you’re considering taking a lump sum and there’s an offer on the table, you may need to act before yearend to get the most out of your nest egg. Lump sums are typically calculated based on the present value of guaranteed monthly payments, using mortality tables and interest rates published by the IRS. Under the formula pension plans use, the lower the interest rates, the higher the lumpsum payout.
Esta historia es de la edición December 2022 de Kiplinger's Personal Finance.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición December 2022 de Kiplinger's Personal Finance.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
INTERVIEW: PLANNING SUMMER TRAVEL? YOU'LL HAVE LOTS OF COMPANY
To save money, book your tickets well ahead of time, use technology and avoid popular destinations.
Retirees Are Less Satisfied
RECENTLY, I wrote about the results of the Retirement Confidence Survey, conducted annually by the Employee Benefit Research Institute (see \"Living in Retirement,\" Dec.). EBRI followed up with a deeper dive into spending trends among retirees with its 2024 Spending in Retirement Survey. I spoke with Bridget Bearden, research and development strategist with EBRI and author of the study, about its conclusions.
A Smart Way to Empower People With Disabilities
An ABLE account can improve your loved one’s quality of life.
WHY YOU MAY NEED A MEDALLION STAMP
Transferring securities from one account to another often requires this extra step.
THE HIGH STAKES OF A TRADE WAR
INFORMATION ABOUT THE MARKETS AND YOUR MONEY
DON'T PAY MORE THAN NECESSARY TO PREPARE YOUR TAX RETURN
Many DIY taxpayers have access to free options, but whether you qualify depends on the fine print.
IS A ROBO ADVISER RIGHT FOR YOU?
Use our guide to assess the growing array of low-cost, computer-driven investment managers.
THE BEST REWARDS CREDIT CARDS
Whether you want simple cash-back rewards or points to put toward travel purchases, we have something for you.
WHAT RETIREES NEED TO KNOW ABOUT TAXES
Take steps to avoid a surprise tax bill and underpayment penalties.
How to Survive Market Mayhem
AMONG my missions is to advise smart readers against doing dumb things out of haste or panic.
