I've become fully vested in my company's pension plan, and I intend to quit in the near future to pursue other career options. It seems the pension scheme allows me to decide what to do with the pension when I quit rather than forcing me to wait until retirement. I'll be 28 when I quit.
Based on what I've read, it seems the lump sum is the best choice considering my age. Most annuities (and I think my options are included) don't keep up with inflation in the long run. This is fine for older people anticipating a short run, but it would be a problem for me.
Am I right in thinking the lump sum is the best option for me?
- I also have $80k in a 401(k). That's separate from the pension.
- With a lump sum I'd shore up my emergency stash and reinvest the rest.
- The lump sum is about $10k; the annuity would be about $500/mo at age 65.