Hi I am 55, 56 in December I have worked at two companys - one for 10 years the other for 18.
I was laid off from the last 2 years ago and have a pension from both. and was wondering if it would be better to take the cash out option from one or both of the pensions I realize I will still need to work at least part time for a while to make ends meet.
thank you for your opinion. WalterWendy:
It depends.. but usually you are far better off, in the long run, with a lifetime pension. If you take $10,000 cash -- when it's gone, it's just gone. However -- If you take a lifetime pension at $200/mo, that $10,000 is gone in the first 4 years ($200 x 12 months/year = $2400 per year x 4 yrs = $10,000).
Bottom line: those who are lucky enough for a LIFETIME pension are really lucky. You get it for life. If you retire at 62, with Social Security and two pensions, you might draw that for 20 yrs to age 82, or 30 yrs to age 92! It happens... people outlive their monies all the time but a pension is paid for life.
Play with the amount you'd get "cash" compared to the monthly (or email me with both using the "contact Wendy" on the left bar).. and I'll get back to you!
Wendy's other site... because Aging Matters!