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Article: Why not to take the company pension. (advantages of taking one lump sum at retirement instead of monthly payments) (includes related article)
- Article from:
- Kiplinger's Personal Finance Magazine
- Article date:
- January 1, 1994
- Author:
CopyrightCOPYRIGHT 1994 The Kiplinger Washington Editors, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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IT'S NEVER BEEN EASY TO DECIDE how to take a company pension at retirement--the kind that pays you a certain amount each month. You can take monthly payments for the rest of your life; for your life and your spouse's; or for a certain number of years or the rest of your life, whichever is longer. All sorts of actuarial mumbo-jumbo are involved, and your choice usually has a lot to do with the size of the checks you'll get.
These days, the decision is even tougher for retirees who are being offered an additional option: The opportunity to skip monthly payments altogether.
What?
That's not as crazy as it sounds. In fact, it's probably your best ...