Pension lump sum or monthly pension?

Show what a pension lump sum could buy as income, next to the plan's monthly offer.

1. 1.

   Swap in your client's facts from the plan's offer. Paste the case and send it.

   Copy

   Using Annuities Genius: my client, 64, in Ohio, can take a $480,000 pension lump sum. The other offer is $2,700 monthly for life with 50% to his wife, who is 62. First list the missing current plan facts, including each available commencement date, survivor form, COLA, subsidies, health benefits, spouse-consent rights and plan or PBGC status. Stop and ask me for the current plan documents. After I provide them, compare a retail quote only at the same start date and survivor percentage as the plan figure. Label every source. Compare tax, liquidity, issuer risk and longevity protection. Do not recommend the lump sum from the retail quote alone. I decide.

   Select the text and copy it.

2. 2.

   Check each number is marked as Annuities Genius or the plan. Check ages, start dates and survivor forms.

   Annuities Genius cannot see the pension. Obtain every figure and missing feature from the pension's current documents.

3. 3.

   Compare only the same start date and survivor form. Get the matching plan figure before comparing.

   Confirm the retail quote's survivor share with the carrier. Do not infer it from the income amount.

4. 4.

   Ask the plan who backs the pension.

   PBGC (federal pension insurance) covers most private pensions, up to a limit. An annuity rests on its insurer.