When you have a pension and retirement looms, you must make some decisions. The question is, should you take one lump sum or an annuity?
There are pros and cons for both strategies. The decision affects your financial future, so you don’t want to take it lightly. What is the best course of action?
Pension Annuity Lasts a Lifetime
An annuity means your pension will be paid monthly for your remaining life. An annuity is a guaranteed income and does not vary because of market performance. Although the amount is fixed, some plans have a cost-of-living adjustment (COLA). But check your plan because not all companies offer a COLA.
