Comparing monthly pension payments to lump sum: trade-offs include stability vs flexibility/growth.

From Yahoo Finance: 2025-04-13 08:30:00

Taking a monthly pension payment versus a lump sum comes with tradeoffs. Monthly payments offer stability regardless of market performance, while lump sums provide flexibility and potential growth through investments. Monthly payments can safeguard against longevity risk and offer a guaranteed benefit, but may not adjust for inflation or provide for beneficiaries. Lump sums require careful investment and withdrawal planning, but allow for potential growth and inheritance for heirs. Consider factors like income stability, risk tolerance, and longevity protection to decide which option suits you best. Consult a financial advisor for personalized guidance.



Read more at Yahoo Finance: What Are the Trade-Offs of Taking Monthly Pension Payments Over a Lump Sum?