First off - consider this.. Is this a pension, or a "structured settlement" ? Let;s assume this is a pension. Combined with social security, this is a guaranteed income flow. So when you do your financial planning, you have two fixed sources of income, and can then allocate your savings mix toward more equities with lesser fear of market moves. There are many websites that can give you an idea of what your lump sum would annuitize to. Again, assuming it is a pension, in most cases your monthly pension payment would far exceed the proceeds of an annuity. Dangers of taking a lump sum ? OF course, your financial acumen, tolerance for risk etc. If this is not a pension, but some type of structured settlement, lottery win etc .. I'd most likely take the lump sum, and NOT buy a true annuity.. I'm in the ken fisher camp of hating true annuities..
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