the lump sum pension "sweet spot"

Questions and answers about medical benefits, severance pay outs. etc.

the lump sum pension "sweet spot"

Postby phoneman55 on Wed Mar 14, 2018 10:26 am

Hi all, I'm getting closer to retirement age and I'm very confused about how to find the "sweet spot" as far as the lump sum pension distribution goes. I know that age, years of service and GATT rate all play a part. If anybody here can impart some advice or knowledge from personal experience I'd really appreciate it. TIA
phoneman55
Manager
 
Posts: 49
Joined: Mon Apr 27, 2015 5:41 pm

Re: the lump sum pension "sweet spot"

Postby delawaretech on Tue Mar 20, 2018 5:38 pm

When I left in 2016 my lump went up drastically the day after I turned 50. With 29 and a few months and 50 it was a very easy decision, getting the offer also helped.
delawaretech
VP
 
Posts: 69
Joined: Sat Jun 27, 2015 8:26 am

Re: the lump sum pension "sweet spot"

Postby rsn04 on Tue Mar 20, 2018 7:53 pm

retired Mar 2017, if memory serves 40-50% increase at age 50 and 27 yrs, and another 15-20% at 30yrs... note: interest rates were on lower end at 30 yr anniversary & no doubt had some affect...
rsn04
Lineman (Person)
 
Posts: 17
Joined: Sun Aug 14, 2011 7:25 am

Re: the lump sum pension "sweet spot"

Postby Telesaurus Rex on Sun Apr 29, 2018 7:01 pm

It's a strange formula... I had a co-worker retire at 48 years old with 30 years of service, and his lump sum was going to go down if he stayed (It was a very high figure due to his age)... I will hit 30 years when I turn 52, and, according to the pension estimator available on the corporate web, my lump sum continues to go up every year until I hit 59... and then it begins to go down (slowly)... all assuming the same interest rate...
random thoughts from a mid-career dinosaur
Telesaurus Rex
CEO
 
Posts: 356
Joined: Wed Sep 23, 2009 9:24 pm

Re: the lump sum pension "sweet spot"

Postby phoneman55 on Sun May 06, 2018 11:55 am

Is there a certain age at which the lump sum amout will always start to go down? TIA
phoneman55
Manager
 
Posts: 49
Joined: Mon Apr 27, 2015 5:41 pm

Re: the lump sum pension "sweet spot"

Postby IDMN on Sun May 06, 2018 7:14 pm

phoneman55 wrote:Is there a certain age at which the lump sum amout will always start to go down? TIA


I was lead to believe in 2003 when I retired it was age 55. That was using the GATT rate. It was based on some mortality table. I think at the time in 2003 the GATT rate was 4.2%. I would think after the 2008-2009 great recession the Gatt went much lower.
IDMN
CEO
 
Posts: 125
Joined: Mon Sep 15, 2008 11:28 am

Re: the lump sum pension "sweet spot"

Postby TexasDuck on Mon May 07, 2018 12:41 am

TexasDuck
Management trainee
 
Posts: 39
Joined: Sat Aug 16, 2014 7:59 am
Location: North Texas


Return to Retiree Benefits

Who is online

Users browsing this forum: No registered users and 2 guests

cron