Lump sum or annuity payments? Single-life benefits or joint-and-survivor benefits? Once you explore the risks and hidden costs, the right pension answer for you could come down to control.

The lump sum-or-annuity decision can be a complicated one, and the decision that's right for one person may not be best for another.

A lump-sum may be managed for inflation, and higher future interest rates allow the retiree to re-invest at a rate higher than the blended rate (like the 3.11% in the 61-year-old example).

Many cash-balance plans offer a lump-sum payment only, so you may not have a choice. If you do have a choice, there's no one easy answer. Monthly payments: If you opt for a monthly payout - known ...

Lump sums are commonly associated with pension plans and other retirement vehicles, such as 401(k) accounts, where retirees might accept a smaller upfront lump-sum payment rather than a larger ...

If either of them lived another 30 years and they invested the $800,000 lump-sum, the IRA would have to earn a 4.65% rate of return to produce the same $50,000 of income the fixed payment option ...

Workers with defined benefit pensions may be offered the chance to collect a one-time, lump sum payment instead of monthly pension benefits for life. Making this decision involves evaluating a ...

Learn about how to invest a lump sum and the pros and cons of doing so. S&P 500 +---% | Stock Advisor +---% Join The Motley Fool. Accessibility Log In Help Accessibility Menu ...

Since the lump sum equivalent of a monthly pension moves inversely to interest rates, this year’s historic run-up can reduce lump sum cash-outs by 30% or more - larger reductions for younger ...

Deciding between a $500,000 lump sum or $3,500 monthly annuity payments for your pension isn’t straightforward and involves weighing several personal factors. You need to consider how long you ...

For many individuals, receiving a lump sum is a key turning point in their lives.. When markets are uncertain, as they are today, it can be difficult to know when to put the resulting cash windfall to ...