If you are fortunate enough to have a defined benefit plan at work, you may have a very important upcoming decision to make. The task of deciding between a lifetime monthly payment or a seven figure one-time payment can be daunting. To compound the complexities, there are various different annuity options factoring in spousal payments and fixed term guaranteed payments.
Before stressing over the details, the first step is to understand the advantages and disadvantages of each option. The table below objectively compares the two:
|Annuity payments||Lump-sum payments|
|Your monthly income is fixed, you have no investment decisions, and|