Would you take a "Lump Sum" offer?

[quad decade guy]

If so, how much would you accept?

My Sis and Bro in law(ATT phone guy and teacher) were offered lump sums.....totalling about $500k.

They took it. Seems like a nice amount of money....until you think about it. That's it. No more. NOW, YOU HAVE TO MAKE IT LAST THE REST OF YOUR LIFE. They are both mid 60's. He eligible for SSI too and her not as she was a teacher(whole other story). So he will get some more each month.

So, what would you do?

Me? I'm looking at $50k a year for life from our pension. I might live 20 more years(59 now).

So, something like $1 mil would have to be the number. We all know that ain't going to happen.....

Now, given our Unions propensity to squander everything they touch and UPS just itching to flush the Union.....and pension....

 

[DriverNerd]

The younger you are the more you have to ask yourself "will the pension be around when I retire?". I think if you're older and the pension looks solid for a while (like it does now), it would be stupid to take a lump sum. I'm not retiring for 25 years (estimate) so I would definitely consider taking a lump sum and invest it in something else (but I also max out my 401k too). Exactly how much is an interesting question.

 

[burrheadd]

If so, how much would you accept?

My Sis and Bro in law(ATT phone guy and teacher) were offered lump sums.....totalling about $500k.

They took it. Seems like a nice amount of money....until you think about it. That's it. No more. NOW, YOU HAVE TO MAKE IT LAST THE REST OF YOUR LIFE. They are both mid 60's. He eligible for SSI too and her not as she was a teacher(whole other story). So he will get some more each month.

So, what would you do?

Me? I'm looking at $50k a year for life from our pension. I might live 20 more years(59 now).

So, something like $1 mil would have to be the number. We all know that ain't going to happen.....

Now, given our Unions propensity to squander everything they touch and UPS just itching to flush the Union.....and pension....

If you had funded your 401-k properly you wouldn’t have to worry about things like this

 

[quad decade guy]

If you had funded your 401-k properly you wouldn’t have to worry about things like this

You don't know me. I'm not "worried". That's your bullying, narcissistic construct. Go bully a girl some more...

Sigh.

 

[quad decade guy]

The younger you are the more you have to ask yourself "will the pension be around when I retire?". I think if you're older and the pension looks solid for a while (like it does now), it would be stupid to take a lump sum. I'm not retiring for 25 years (estimate) so I would definitely consider taking a lump sum and invest it in something else (but I also max out my 401k too). Exactly how much is an interesting question.

"Looks solid"....not sure what that means. Pretty subjective.

And 25 years.....I can't imagine UPS even being here let alone a pension.

 

[IVE GOTTA PACKAGE 4U]

You don't know me. I'm not "worried". That's your bullying, narcissistic construct. Go bully a girl some more...

Sigh.

No he brought up a valid point.
He Is not bullying anyone

 

[Shiftless]

If so, how much would you accept?

My Sis and Bro in law(ATT phone guy and teacher) were offered lump sums.....totalling about $500k.

They took it. Seems like a nice amount of money....until you think about it. That's it. No more. NOW, YOU HAVE TO MAKE IT LAST THE REST OF YOUR LIFE. They are both mid 60's. He eligible for SSI too and her not as she was a teacher(whole other story). So he will get some more each month.

So, what would you do?

Me? I'm looking at $50k a year for life from our pension. I might live 20 more years(59 now).

So, something like $1 mil would have to be the number. We all know that ain't going to happen.....

Now, given our Unions propensity to squander everything they touch and UPS just itching to flush the Union.....and pension....

Just my 2 cent's?

Calculating longevity of life and retirement as even a semi-constant value sometimes just doesn't work as planned.

I am a huge proponent of retirement planning early. Generally speaking "One Size" Doesn't fit all!

I have had two friends pass way in the past few years and both were under 59 and another one 61 just retired UPS, died in August and now another buddy 66 has a month left at max, if that. Worked till he was 65. Virtually saw NO RETIREMENT other than a short slow death and pension check with a couple SS payments.

The calculation of Health thru your final years, Value of the monies you set to provide you a retirement, are all values that can change in a blink of an eye prior to retirement or when in retirement. I believe its right up there with one of the biggest decisions you will make in your life!

I would guess everyone here who has retired had to come to the conclusion that these factors of risk & health associated with retirement are based on personal specific plans and projected guesses based on ones life and family life expectancies.

OK>>>> Dos Cenatvo's given! Retire when you can and NO LATER is my advice!

 

[Poop Head]

Absolutely.

 

[DriveInDriveOut]

Yes.

 

[Jones]

When pension plans offer the option of a lump sum payout in lieu of an annuity it's generally because their actuaries have calculated that it will save them money which means it's usually not a good deal for you. Exceptions would be if you knew for a fact you were gonna die in the near future (terminal cancer diagnosis or some such) or if you had enough income from other sources that you could afford to invest all or most of the lump sum for long enough to make up the difference.

 

[freeloader]

I received something from UPS regarding this a few years ago. I assumed that corporations managing the employee pension fund was becoming a thing of the past and they no longer wanted to pay the costs of managing the pension fund. I took the lump-sum (penalty-free) and just rolled it into my own 401k. Easy as that. I also don't think UPS was necessarily low-balling either. I just think they want out of the responsiblility of managing the pension fund so they are offering you the present value of your future pension benefit (finance 101 blah blah blah) so that you can roll it into your own 401k and manage it yourself.

 

[IVE GOTTA PACKAGE 4U]

I received something from UPS regarding this a few years ago. I assumed that corporations managing the employee pension fund was becoming a thing of the past and they no longer wanted to pay the costs of managing the pension fund. I took the lump-sum (penalty-free) and just rolled it into my own 401k. Easy as that. I also don't think UPS was necessarily low-balling either. I just think they want out of the responsiblility of managing the pension fund so they are offering you the present value of your future pension benefit (finance 101 blah blah blah) so that you can roll it into your own 401k and manage it yourself.

When they offer you a payout it's always a better deal for them

 

[freeloader]

When they offer you a payout it's always a better deal for them

That's very possible but I will never know. AFAIK pension contributions were a company benefit and I never paid anything into it myself (at least not that I remember, but I could be wrong). So whatever they might be saving is from their own contributions.

 

[IVE GOTTA PACKAGE 4U]

That's very possible but I will never know. AFAIK pension contributions were a company benefit and I never paid anything into it myself (at least not that I remember, but I could be wrong). So whatever they might be saving is from their own contributions.

They are willing to give you your contributions back but you're not giving you the interest you should have accumulated on that over the years

 

[NAHimGOOD]

Direct deposit asap

 

[Poop Head]

When they offer you a payout it's always a better deal for them

Only if you live long enough

 

[IVE GOTTA PACKAGE 4U]

Only if you live long enough

When I offer you money it's not to your benefit it's not to your benefit

 

[zubenelgenubi]

It's my money and I want it now. I have too man6 plans and too little time to see them through. I can't throttle it back accommodate a measly monthly stipend.

 

[Shiftless]

There are some on here who have nearly collected 3/4 to a million dollars thru the pension system. Most only
paid in a fraction of that in to the system. Wonder what a buy out number would have been?

Remember retirement is not for everybody, so work till you puke!

Keep in mind Social Security needs more contributors, so don't quit paying in till you absolutely have to!

Thanks,
All us old retired people

 

[IVE GOTTA PACKAGE 4U]

There are some on here who have nearly collected 3/4 to a million dollars thru the pension system. Most only
paid in a fraction of that in to the system. Wonder what a buy out number would have been?

Remember retirement is not for everybody, so work till you puke!

Keep in mind Social Security needs more contributors, so don't quit paying in till you absolutely have to!

Thanks,
All us old retired people

People don't realize what's next year of their pension contributions could mean to their take home every month not including beefing up their social security because it is by your best 35 years of earnings
Not sure what the correct answer is