Would you like to
contribute to this site?
Annuity Menu
Submit an Article
Submit a Tip
Place your Ad
Add URL
Annuity Questions?
Contact Us
| |
Search the Article Archives
|
Annuity Lump Sum Payout
By Dave Vesh
Is Your Pension Safe?
It doesnt just take a another Enron to put your pension at risk. When a corporation that is bankrupt announces that it cant pay its pension obligations, employees quickly review their losses and the future of their retirement finances. (continued below)
Many Pension Plans are Short-Funded
Some pension plans in the USA, are constantly short-funded by billions of dollars. As pension plans become uncertain, because of this short-funding or company bankruptcies, employees consider whether to take their future pension payments in a lump sum or to settle for an annuity, risking receiving only a fraction of the benefits that were promised by the employer. However, not all pension plans permit the choice to take a lump sum, and generally the employees can only access their pension after retiring.
How Much Can I Get as a Lump Sum Cash?
Lump sum is determined by your age at retirement and the interest rate of the pension plan. Many experts recommend accepting the lump sum now. The sum can be reinvested in more secure and diversified ways that will help insure your financial stability at your retirement age.
Annuity Payments
Annuity payments are usually for the lifetime of the workers. There are options to direct benefits to a spouse, but that reduces annuity amounts. Workers who decide lump sum payouts, should get professional help on this issue.
About the Author:
Want to really learn more? Then check out the Structured Settlements vs. Lump Sum of Cash article at SaveHog.com lump-sum-structured-settlement.savehog.com section, where you will find a variety of valuable information about structured settlement and lump sum, as well as host of online resources, calculators and structured settleme
|
 |
|
