QUESTION:

Pension: take lump or annuity

I may either take my pension as a lump sum or in various annuity payment configurations. How should this be decided, if there is not a best answer.
asked by racy, 3/16/2007
Categories: Pensions
ANSWERS:
Answered by: SilverSurfer, 04/16/07
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Hi Racy,

This article does a good job of reviewing the considerations when deciding whether to take a lump sum or annuity.

http://money.cnn.com/2007/01/29/pf/expert/expert.moneymag/index.htm?postversion=2007012911

A key consideration is how long you expect to live - if you take the lump sum, then there is a chance you can outlive your money. If you take the annuity option your stream of income benefit should last as long as you do.

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