I have friends who were able to take lump sum distributions on their retirements, and that sounds like an option to me. If interest rates are low, lump sum payments are larger. Safe from future retirement fund changes, but of course still subject to market fluctuations.
Our Pension plan IS a Federal Pension plan both of us being retired Federal Employees and therefore not on the list. Is that program seen as a negative plan.Look like it is a attempt to save and protect pension plans that may be in trouble for whatever reason. As I understand it the monies in most if not all pension plans are invested in various funds and the last few years have not been kind to investing monies.
The problem with the lump sum payment is many folks took it and instead of investing it spent it and wound up with little or nothing. One would still have to invest the lump sum money and be a lot smarter than those already investing it.The investing picture is no better for the individual or the group investing it for you. I my self am not smart enough to do that.
There is the dishonest investor VS the inexperienced investor(self).Both will lose you money. It would appear to be that most of the pension plan problems are due to the across the board financial meltdown over the last few years.????
Our 401K although it lost tons of money in the last few years due to the meltdown has recovered and is again in the black.Fortunately we did not use it for retirement funds but many folks did.
I saw that program as a effort to monitor and protect pension plans with of course some negative effect to the consumer.
I read in our newspaper Virginia is adding 2 billion dollars to its retirement plan. Our state plan is way underfunded like almost all government plans. I glad I have my own plan, but that is not without its own problems. When do you start taking money out? How do you switch gears and go from putting in to taking money out? Thats hard to do. You have been putting in for 30 years and are programed to put in not take money out and how much do you take out without running out of money? How long are you going to need it? What will inflation do? How much will your nest egg increase in value or decrees? And how much do you wont to leave someone. ??????s.
I have friends who were able to take lump sum distributions on their retirements, and that sounds like an option to me.
I have two family members who opted for the lump sum payment rather than a monthly retirement check. They made a good choice as their company is now gone. They took that lump sum and invested it and it's not making them rich, but they are ahead.
The next problem we have is Social Security. I know someone who just retired they earned $21.000 per year and had for several years now he gets $1900 a month in Social Security. Figure that out if you can.