Pensions may play a crucial role in securing a stable and comfortable retirement by providing individuals with a source of income after they stop working.
We understand their role in long-term financial planning and strive to empower our clients with the knowledge and tools to make informed decisions about their retirement funds.
A well-structured pension plan can offer peace of mind and financial security during your retirement years. Whether you’re eligible for an employer-sponsored pension, considering individual retirement accounts (IRAs), or weighing other options, it’s essential for you to understand the different options you may have. Our resources and guidance can help you make the most of your retirement savings.
Should You Take a Pension Buyout?
The number of companies offering pension plans continues to shrink, while the number of companies looking to shed their pension liabilities is increasing. COVID-19 only accelerated the latter trend. Some companies are offering pension buyouts to reduce the expense of running pension plans and ultimately, eliminate their debt obligations to their pension plan participants. The decision to accept a pension buyout should not be taken lightly.
While pension plans are a great vehicle for a steady stream of retirement income, there are some risks associated with them. The most common concern we hear is, “What happens if the company funding my pension goes bankrupt?” If the company providing your retirement income is not on solid footing, the safety and security you think you have in a pension lifetime income may not be there. Choosing to take the pension cash value in a lump-sum distribution is not a choice you should make without the right amount of thought and analysis with your financial expert.
Do yourself and your financial future a favor.
Talk with a financial specialist who can walk you through your options. Our team can help you develop a financial plan that outlines how you’re going to fund your retirement. Your retirement plan should make it much easier to see which pension option will bring you the optimal retirement income.
