That's because many advisors charge you a percentage of the money they manage. My husband's pension is fully funded. The present value of his pension payouts was far greater than the present value of the invested lump sum using a 4% withdrawal rate assumption. We took the 75% joint and survivor annuity. Yes, there is a possibility that someday in the misty future his company will renege on the pension. If so, his pension will be reduced by the PBGC. We figured that into the equation. The pension payout still won.
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