Should You Take a Lump Sum Pension Distribution? - Barron's
Many employers offer those contemplating retirement an option to take their retirement benefits as a lump-sum, rather than choosing the lifetime monthly payout option. Getting this large lump-sum distribution can be very tempting to those about to enter retirement, but it may not be the wisest long term financial choice. If you are offered this option, you should very carefully consider your specific personal situation, including and especially your life expectancy, before deciding. If your health isn’t good and you don’t anticipate a long life, taking the money up front would make a lot of sense. But examining your overall retirement outlook – finances and longevity – is critical to making the right choice if offered this option by your employer, as explained in this Barron’s article by Nick Fortuna. Click here to read more.