My question involves labor and employment law for the state of: NY
I recently received a pension package from my former employer. This is the first one I have ever reviewed, and it has 20 pages which requires several signatures. In this example, let's say that I have about 25yrs until retirement, and am very healthy (let's assume I live an additional 20 yrs (85 years old)). I am having trouble finding out if I should take the monthly payment annuity (1) or lump sum (2). For example, if it said that I can take either a monthly $600 life annuity or lump sum of $200k, wouldn't the $200k be the obvious choice if I put it in an IRA with ~6% annual interest?
1) $600 * 12months/yr * (25+20yrs) = $324k over my lifetime
2) $200k w/ annual 6% interest over 25yrs = $893k at age 65yrs
In addition, is there anything else I should look for in this pension package document? I heard that they can sometimes omit important information.
I recently received a pension package from my former employer. This is the first one I have ever reviewed, and it has 20 pages which requires several signatures. In this example, let's say that I have about 25yrs until retirement, and am very healthy (let's assume I live an additional 20 yrs (85 years old)). I am having trouble finding out if I should take the monthly payment annuity (1) or lump sum (2). For example, if it said that I can take either a monthly $600 life annuity or lump sum of $200k, wouldn't the $200k be the obvious choice if I put it in an IRA with ~6% annual interest?
1) $600 * 12months/yr * (25+20yrs) = $324k over my lifetime
2) $200k w/ annual 6% interest over 25yrs = $893k at age 65yrs
In addition, is there anything else I should look for in this pension package document? I heard that they can sometimes omit important information.
Pension vs Lump Sum - Which One to Take if I Am Not Retired Yet
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