Be sure to check on all legal issues. Some plans have penalties when you start collecting as young as you are.

You probably know that I'm a tax accountant and this is the kind of question clients ask me all the time. Nobody can give you a definite answer for your particular circumstances without getting a lot of facts and conjectures and crunching some numbers.

However, if you were to leave it as a monthly annuity rather than rolling it into something else and taking it out however you take out the IRA or wherever else you might put it, it seems like a pretty nice supplement for your retirement years - could pay for gas or groceries or something like that once you're not working. I might be inclined myself to take the monthly income when the time comes just to know I have a little reliable income stream each month no matter what else is going on.

It's good you have the option. I would have someone with experience check it out. Rob has a pension from working as a temster at a daily. He is entitle to $450 when he turns 65. i called and said he died and he won't turn 65. They said I will get it when he would have turned 65. I am 12 years older than Rob. Everyone dies in my family around 78 so I may collelct that pension for a year or so. Can you believe that #hit. Donna

They told me I can collect right away. I'm still considering it, but my financial advisor told me I'm better off putting it in an IRA. Still, he's not exactly objective on this. He'll get paid if I invest with him, otherwise nothing. Still, I trust him, but he's thinking alone the lines of me working until I'm 67. Never thought I'd say this at my age, but that's a long way off. I just got through reading an article about the number of 55+ forced into an early retirement. If that happens, I'll end up with penalties trying to get the money out. Add to that problem that it wouldn't last long because an IRA is not an annuity. I just don't know.

Then you think about the stock market. It's okay, but people lose their money in it everyday. The anuit I would receive from the pension is guarnteed. What's that about a bird in the hand.

My husband has 2 pension funds from 2 jobs that he had. I can start collecting when he would've been 55 or when he would've been 65. It's a difference in the amounts, but I'm good for now. I think it's just a matter of choice for you. Gee, decisions, decisions huh? I'm planning to work until my daughter graduates college, which may be 2 to 3 years, then it'll be "time" for him to have been 55. Also, it's good to talk to someone at the "pension office" and get everything straight to start with. Wish you well!

You are right your FA will be biased towards you investing it in an IRA for the commission
he will receive.
Don't make the mistake of thinking he's your friend. He may be a good guy but he is out to make a living.
I would seek out an fee only advisor or an accountant. The fee based advisor charges you an hourly rate for impartial advice. They aren't paid on commission or affiliated with any products they are likely to push.
They will ask you all the right questions to help you make the best decision based on your unique circumstances.

Thanks, Tskks. I never knew they had fee only advisors. What's the best way to find one?

I had an option of taking a larger amount for ten years or a smaller amount for life. The smaller amount would have added up to over 200K more if I lived to be 82 more the longer but I needed to take to larger amount now to be able to support myself. I am also getting his SS widow benefit until I turn 66 when mine will be worth more. In the next ten years I will need to save what I can. I had to do this for right now..

Take a look at your life and determine whether or not you need it now......and for as long as you live..............it is guarenteed and something on which you can count..........and if you can manage to save it, would be a tidy sum when you retire.
L

I would just goggle Fee only advisors and add your area. Hope this helps.

I ran it through an inflation calculator too. In 20 years it'll be worth about $189.00. So I'm making myself think what if I had that monthly instead of the real about.

In 7 years, you could draw on his Social Security until you turn retirement age. I plan to hopefully retire at 60 and draw on his Social Security until I am 66 at which time, my Social Security will be a larger amount. But I'm tired of wondering every day if the company is going to fold, sell to someone else or just be let go because of my age so I am going to plan for retiring at 60.
It's going to have to be what you want in your life as to whether or not to take it now and whether or not you need it now. If my husband had had a pension, it certainly would have helped me and I would be taking it monthly to help out now. I have really had to cut corners and still live on a very tight budget. Be thankful you have this dilemna.
Alice

I'm very grateful. I've so far decided to follow the widow's rule of waiting one year before making important decisions. I'm still thinking about inflation and what that will do to me. As for retirment at 60, I don't know. I may have made more at which point I don't think it will work. I'll have to check into that one. I know what you mean about worry over employment.

Thanks for the advice. I decided to take the money. I sought an outside advisor like Tskks suggested. It was a good idea as this person pointed out that my return would be about 9% and I'd have to beat that in an IRA. He also pointed out that the only good reason to roll over to an IRA would be to leave money for my heirs which I have already taken care of(step-daughter)

In these economic times and no DH to rely on, I feel safer with this little something.

Good, I'm glad that this got resolved in a way that makes sense and that you had an advisor to help you make the decision. A cushion each month is a good thing.

Hugs, Gail