When deciding between taking your pension from your employer or the lump sum, Adam Moeller, a financial advisor in Denver, Colorado, says it really depends on your situation and meeting with an advisor will allow them to run some illustrations for you. That being said, typically, taking the lump sum makes sense, Moeller says.
There are products available today allowing you to do a roll-over tax-free and put it into a product with guarantees of 7-8% for future income. Moeller says if you have a few years to wait and don't need that money, he says you can definitely beat what your pension company would be giving you. The biggest thing, Moeller says, is that in taking the lump sum, the money is in your control.
Adam Moeller can be reached at 720-974-4800 or at myajmfinancial.com. He spoke with Retirement News Today, providing online retirement video news content. Retirement News Today is a featured network of Sequence Media Group.