Deciding whether to take a lump sum or monthly payments from your defined benefit plan can be one of the most important financial decisions of your retirement.
A defined-benefit plan is the promise of a monthly salary substitute after retirement. The employer funds the plan fully.
The amount you’ll receive from pension depends, first of all, on whether you work for a company that offers one. Most of us don’t. In fact, only 35 percent of Americans have such a benefit. In 1975, 88 percent of workers with workplace retirement plans had defined-benefit pensions.
If you are among the lucky …Read More