Free AI web copilot to create summaries, insights and extended knowledge, download it at here

Abstract

me from your pension.If the income is higher with a private company, you’re probably better taking a lump-sum and creating income yourself.<h2 id="5784">✅ What is the survivor benefit❔</h2>Often times if the pension owner passes away the survivor benefit is only 1/2 or 2/3 of the pension income (so the surviving takes a pretty big pay-cut).If done through a private company, you can guarantee the income at 100% for both spouses….If your pension doesn’t allow for a lump-sum distribution, and the non-pension-owner spouse stands to have a pretty large income gap if the pension owner dies, then you should consider a <a href="https://agents.ethoslife.com/invite/a80ad">life insurance policy</a> to cover that income gap.<h2 id="4994">✅ What does your tax-free retirement look like❔</h2>If you take the pension income it is all likely to be taxable and you won’t have the ability to <a href="https://readmedium.com/the-big-no-no-on-roth-conversions-avoiding-the-10-penalty-be286564c17d">reposition assets</a> into tax-free buckets.If you take a lump-sum, you have more flexibility of WHEN you turn income on which allows you to shift money around so you can <a href="https://readmedium.com/54-year-old-with-a-laddered-tax-fre

Options

e-retirement-a-1-5m-tax-free-legacy-bc51dbe3d40e">take your income tax-free</a> and (ideally) prevent social security from being taxed as well.<h2 id="8add">✅ Have You Considered Long-term Care as Part of Your Retirement Income Plan❔</h2>Lastly, if you take a lump-sum, you can provide more flexibility for <a href="https://readmedium.com/the-2-new-innovative-ways-to-pay-for-long-term-care-in-retirement-9051b9da38b7">long-term care</a> as most private contracts provide added benefits to allow for early access in the event of a long-term care need.Some pensions don’t allow for the lump-sum option and sometimes it doesn’t make sense to take the lump-sum. 👎🏻But, it ALWAYS makes sense to review the options before you select your payment option!👏Let’s chat 💬😎Connect With Me & Access All My Resources <a href="https://pages.safewealthplanning.com/profile">Here</a>Enjoy this blog? You’ll probably enjoy this one as well: <a href="https://readmedium.com/never-take-social-security-while-repositioning-money-for-a-tax-free-retirement-6f2d159b0fd7">Never Take Social Security While Repositioning Money for a Tax-free Retirement</a>To your success,Matt</article></body>

Take Your Pension as Lifetime Income or as Lump-sum?! 4 Things to Consider

(don’t forget to checkout the video too)

Pensions are a wonderful tool for creating a guaranteed income stream that you can never outlive in retirement.

But, should you take the income from YOUR pension or should you create retirement income for yourself?!

4 items to consider in taking your pension as income or as a lump-sum

✅ Can You Get a Higher Income Guarantee on the Private Market❔

If your pension income is much higher than the private market, then you should likely take the income from your pension.

If the income is higher with a private company, you’re probably better taking a lump-sum and creating income yourself.

✅ What is the survivor benefit❔

Often times if the pension owner passes away the survivor benefit is only 1/2 or 2/3 of the pension income (so the surviving takes a pretty big pay-cut).

If done through a private company, you can guarantee the income at 100% for both spouses….

If your pension doesn’t allow for a lump-sum distribution, and the non-pension-owner spouse stands to have a pretty large income gap if the pension owner dies, then you should consider a life insurance policy to cover that income gap.

✅ What does your tax-free retirement look like❔

If you take the pension income it is all likely to be taxable and you won’t have the ability to reposition assets into tax-free buckets.

If you take a lump-sum, you have more flexibility of WHEN you turn income on which allows you to shift money around so you can take your income tax-free and (ideally) prevent social security from being taxed as well.

✅ Have You Considered Long-term Care as Part of Your Retirement Income Plan❔

Lastly, if you take a lump-sum, you can provide more flexibility for long-term care as most private contracts provide added benefits to allow for early access in the event of a long-term care need.

Some pensions don’t allow for the lump-sum option and sometimes it doesn’t make sense to take the lump-sum. 👎🏻

But, it ALWAYS makes sense to review the options before you select your payment option!👏

Let’s chat 💬😎

Connect With Me & Access All My Resources Here

Enjoy this blog? You’ll probably enjoy this one as well: Never Take Social Security While Repositioning Money for a Tax-free Retirement

To your success,

Matt