How Rising Interest Rates Should Impact Your Pension Decision (Lump Sum vs Annuity)

Ready For Retirement

James Conole, CFP®

Investment Planning, Bonds, Education, Stocks, Cash, Business, Dividend Investing, Retirement Planning, Retirement, Investing, Tax Planning

5 • 706 Ratings

🗓️ 22 August 2023

⏱️ 26 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

How can rising interest rates impact your pension value? In this week's episode, we analyze a real-life scenario from our listener, Mark, who is weighing the pros and cons of an early retirement, a higher lump sum, or a commit to an annuity. Learn how to calculate the imputed returns of an income annuity and how to determine if taking the lump sum and investing it would be the better option. Questions Answered: What considerations and calculations can be used to decide between ...

Transcript

Click on a timestamp to play from that location

0:00.0	making the right decision about whether to collect your pension as a lump sum or as an annuity can be one
0:04.8	the most important and the most difficult decisions to make when it comes to your retirement.
0:09.6	On top of this, the fact that interest rates are rising so rapidly makes us an even more challenging
0:14.0	decision.
0:15.1	So in today's episode, we're going to go over an actual example of how should you think about
0:18.6	this decision in the context of your specific
0:20.9	plan so you can do what's best for you.
0:25.7	This is another episode of Ready for Retirement.
0:28.3	I'm your host, James Cannell, and I'm here to teach you how to get the most of the
0:31.2	life with your money.
0:32.6	And now, on to the episode.
0:36.7	Many of the episodes I do are evergreen to an extent,
0:40.4	meaning whether you listen to it in 2023 or 2020 or 2030,
0:44.5	a lot of the principles will be the same.
0:46.9	And while many of the principles of today's episode will be the same,
0:49.9	it's very timely to an extent,
0:51.8	at least for those of you who have some type of a pension.
0:55.1	And the type of pension we'll be talking about today is really corporate pension, so private
1:00.1	pensions, not a government pension that just has different details about how it's run and the
1:04.7	benefits that you can get from it. But the reason this is timely is because interest rates are
1:09.4	rising. Not only are they rising, but they're
1:11.2	rising rapidly. Now, if you understand how pensions work, typically within a corporate pension
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from James Conole, CFP®, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of James Conole, CFP® and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.