No, you shouldn’t. Your pension is protected by the PBGC. Published by Jane the Actuary View all posts by Jane the Actuary
4 thoughts on “Forbes post, “Should You Take Your Employer’s Lump Sum Offer To Protect Against Their Future Bankruptcy?”
Was fortunate to be offered a lump sum OR a pension. I said give me the money. I will manage it better than you. That was 21 years ago. Lived for 21 years, managed my own portfolio, lived off the lump sum and social security and have more money now than when I retired. Former employer did go bankrupt. The answer is being very blessed, knowing how to manage your own portfolio and being well versed in economics and finances.
Yes, but here’s the catch – we have been very fortunate to have had a record bull market that enabled savers to recover their 2008 market losses and grow their accounts even more. But that can’t be known/predicted in advance (and, as a side comment, my husband and I frequently talk about whether we should plan for a market crash sometime soon). An employer pension, like an annuity, is a form of insurance, which often seems a waste in the event that nothing happened.