Should I take the pension lump sum or payout?
The Annuity Man
Depending on the company you work for and retire from, they might offer you the choice of receiving a lump sum or a lifetime income stream. The burning question is, "Which one is the better choice?" There is no good or perfect answer to that question. It all depends on what you are trying to contractually achieve for the long term.
If you do not need an additional income stream, then take the lump sum payment and go invest that money...or hire a fee only planner to take care of that for you. If you do need income, then you are going to have to do a little more homework. Because lifetime income stream guarantees are commodity type quotes, you need to shop the offer that you are getting with your employer with all of the annuity companies available.
The key to shopping for the highest number available is to do an "apples to apples" quote comparison. Get a copy of the quote from your employer, and then find an agent or advisor that can shop all carriers. From there, it's easy. Just choose the highest contractual guarantee.
Over 80% of the time, I have found that the company's income guarantee is higher than the open annuity market. The reason for this is the company wants to hold on to the money, and not have to come up with the lump sum.
Contact Stan The Annuity Man for the best and highest contractual quotes with all carriers using Stan's proprietary annuity calculators. You can also receive Stan's 6 Annuity Owner's Manuals for free and under no obligation, and see a live feed of the best fixed rate annuities for your specific state of residence.