Do you have a plan for your pension? At SRP, we work with each individual to figure out the best plan when it comes to your pension. There are many factors that can affect this decision, including age, marital status, and interest rates. Watch this video with our CFP’s, Gabe and Ryan, to learn more.

How to choose the form of pension that is best for you

What are the factors that actually affect my pension? That’s a great question, there are a ton of different things that go into it.

Factors to Consider with Defined Benefit Plans

One of the first questions to think about is “Should I take a lump sum if it’s available?” Meaning, can that money be pulled out and rolled into an IRA? Alternatively, “Should I take a promised monthly income for as long as I’m alive and/or my significant other is alive?” We call these defined benefit plans. These are typically the older way that retirees use in order to retire before we had the 401(k) and all these other rules. “Defined benefit plans” still exist some today, however, there’s a lot of factors that go into it.

Are you married?

How old is your spouse compared to you?

What are the interest rates?

Do I take a lump sum or do I take a monthly payout?

What’s going to be better for me?

Those are all the questions we begin to work on with our clients, and answer, as they look for what will be the best option for them. It’s not always the same for every person; every company is a little different as well. If you have any questions on your pension, feel free to reach out to us as Strategic Retirement Plans.