My old job had a pension and they offered me to cash out for $24k or get $100 per month for life - which should I choose?

from 24/7 Wall St.3 days ago

When deciding between cashing out a pension or opting for a monthly payout, individuals should calculate their break-even age, which reveals the point at which the total payouts become equal. For example, if receiving $100 a month, it would equate to a lump sum of around $24,000 at age 65, suggesting a break-even age of 85. The choice should align with one's estimated lifespan, making consulting with a financial advisor advisable for informed decision-making, especially as millions prepare for retirement.

The decision to cash out a pension versus take a monthly payout should hinge largely on how long you think you'll live.
24/7 Wall St.https://247wallst.com/personal-finance/2025/02/05/my-old-job-had-a-pension-and-they-offered-me-to-cash-out-for-24k-or-get-100-per-month-for-life-which-should-i-choose/

Calculating your break-even age helps determine whether the lump sum payout or monthly pension payments will provide more income overall.
24/7 Wall St.https://247wallst.com/personal-finance/2025/02/05/my-old-job-had-a-pension-and-they-offered-me-to-cash-out-for-24k-or-get-100-per-month-for-life-which-should-i-choose/

Read at 24/7 Wall St.

#pension-decisions #financial-planning #retirement #break-even-age #financial-advisors

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My old job had a pension and they offered me to cash out for $24k or get $100 per month for life - which should I choose?My old job had a pension and they offered me to cash out for $24k or get $100 per month for life - which should I choose? Briefly

My old job had a pension and they offered me to cash out for $24k or get $100 per month for life - which should I choose?
My old job had a pension and they offered me to cash out for $24k or get $100 per month for life - which should I choose?
Briefly