Do you know what to do with your pension plan? Do you have the option to have your pension paid out in a lump sum or in monthly payments? If you are unsure how to use your pension plan effectively as you head into retirement, you’ve come to the right place! 

I know talk of pensions and annuities can be confusing, I don’t want to add to any of that confusion for you. Rather, I’d like to take some time to give you helpful information on lump sums, monthly payments, and more. Make sure you have pen and paper ready, you are going to need it! 

You will want to hear this episode if you are interested in...

• Two options for your pension, monthly payments or lump sum. [1:30]
• How your marital status can impact your pension decision. [4:00]
• Why taking a pension lump sum can be helpful [8:00] 
• Should you purchase an annuity to use as an income stream. [11:00]
• Closing thoughts. [14:30]

Looking at your options 

If you don’t know what the situation is with your pension plan, you aren’t alone! I find that many of my clients know that they have a pension but they don’t know what their options are for using it. The two most common options when it comes to using your pension are; 

• Opt for a monthly payment for the rest of your life if you are single. If you are married, you’ll opt for a joint option that will provide a monthly payment for you and your spouse. 
• Opt for a one-time lump sum payout. 

There are several things to consider if you opt for the one-time lump sum payout. You could roll that money over to an IRA or you could pay the taxes on that lump sum and use right away. Make sure to listen to this episode as I expand on this topic and much more. 

Planning for the long term 

Many people don’t take into consideration how their marital status will impact their efforts to plan for their future. When it comes to using your pension to purchase an annuity, make sure you know that the return may be impacted. Insuring two people on one policy is often more expensive - the benefit this allows for that the payments continue even if the person who earned the pension has passed away. What are you waiting for? Don’t leave your pension plan to the last minute! Learn more about using your pension wisely and a whole host of related topics by staying connected to this podcast!

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