Your lump sum pension amount isn’t fixed over time. It changes every year on what the plan calls the recalculation (or revaluation) date. On this date, the plan takes the prevailing interest rates (i.e. the minimum present value segments rates provided by the IRS) and uses those figures to calculate the lump sum value of your benefit. Higher interest rates generally mean lower lump sum pension values.
The rapid rise in interest rates in 2022 could force you to look at retiring sooner than you originally planned. We can help you review your options to see if claiming the lump sum offer makes sense for you and your family in retirement. Book time on my calendar.
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