Maryland’s State Pension Locks You In. A Personal Annuity Keeps You in Control.
If you’re approaching retirement and are entitled to a pension from the Maryland State Retirement and Pension System (MSRPS), you’re likely evaluating your payout options. Maryland offers a lifetime income stream based on your years of service and salary. But here’s the problem: once you elect a payout option, there’s no turning back. If your needs change—or your spouse passes—you’re stuck with the decision. Worse, your heirs could get nothing.
We help Maryland public employees compare the guaranteed income from their MSRPS pension with the payout from a personal annuity that includes a Guaranteed Lifetime Withdrawal Benefit (GLWB). Most retirees don’t realize how much more flexibility and income protection a personal annuity can offer.
Compare Maryland’s Monthly Pension Payouts vs. Lump Sum IRA Rollovers
Use our Maryland State Pension Calculator to explore your retirement options. Discover whether a monthly payout or rolling your lump sum into an IRA fixed index annuity with a Guaranteed Lifetime Withdrawal Benefit is the best solution for your unique retirement needs. Our calculator helps you compare the pros and cons, empowering you to plan your retirement income and maintain control over your accounts.
Below is an estimate of the annual income you’ll receive if you roll over the Maryland State Pension into your own IRA annuity with a GLWB.
Calculator Purpose
The Maryland State Pension Calculator helps pension owners estimate their monthly payout or assess the benefits of transferring or rolling over their lump-sum into a new IRA fixed-index annuity. This tool supports retirement income planning, helping you make informed decisions tailored to your financial goals.
Key Features
- Monthly Payout Option: Estimate the steady income from the state pension annuity.
- Lump Sum IRA Rollover: Compare the benefits of maintaining control over your retirement accounts by rolling over your lump sum into a fixed index annuity with a Guaranteed Lifetime Withdrawal Benefit.
Scenario: Retiring with Maryland State Pension Options
A 62-year-old state employee is retiring with 30 years of service. They can take:
- Single-life pension: Higher monthly income, but it ends when they die.
- Joint & survivor pension: A Lower income that continues to a spouse after death.
- Lump-sum rollover (if eligible): One-time payout to move into an IRA or annuity.
But here’s the issue: Maryland’s pension annuity ends once your chosen option is locked in. It can’t be changed or updated—even if markets crash, your spouse passes, or your health declines. This is where a personal annuity with a GLWB rider stands out.
Roll Over to a Personal Annuity with a GLWB
Up to 8% income-based growth annually before withdrawals begin
A personal annuity with a Guaranteed Lifetime Withdrawal Benefit gives you control over your income timing, the ability to leave money to heirs, and protection against market drops. It’s funded with a lump-sum rollover from your pension or other retirement accounts (401(k), IRA, 403(b)).
✔ Pros:
- Up to 8% income-based growth while deferring income
- Pays for life—even if your account runs out of money
- Heirs receive the remaining balance
- Adjusts income timing to your needs
- Built-in protection from market loss
✘ Cons:
- Payout is based on your age and deferral period
- Income is lower if you start withdrawals early
- Requires careful contract selection to avoid fees
Who Needs It:
- Retirees who want income for life with more flexibility than the state pension
- Married couples who want better legacy planning
- People who prefer income that adjusts with inflation or timing
Who Doesn’t:
- Those who only trust state systems and don’t want control
- Individuals who need every penny immediately and can’t delay withdrawals
Keep the Pension and Supplement with an Immediate Annuity
SPIAs can pay 5%–6% annually for life
If you’re keeping your Maryland pension but still need more guaranteed income, a Single Premium Immediate Annuity (SPIA) can help. Fund it with your 401(k), IRA, or after-tax money to start receiving additional lifetime income now.
✔ Pros:
- Predictable monthly income
- Immediate payout stream
- Combines well with your pension
✘ Cons:
- No access to the principal
- No death benefit unless structured with refund or period-certain options
Who Needs It:
- People who need an extra guaranteed income beyond their state pension
- Those retiring with large 401(k) or IRA balances
Who Doesn’t:
- Investors who want flexibility and growth
- Anyone needing access to funds in an emergency
Why Compare Before You Elect the Pension?
Once you lock in your pension election, there’s no going back. You owe it to yourself—and your family—to compare all income options first. A personal annuity with a GLWB may offer:
- Higher income than the joint-and-survivor pension
- Continued payments after your account depletes
- A lump-sum death benefit for your beneficiaries
- Customization to fit your income and legacy goals
Pros and Cons
Monthly Payout from State Pension:
Pros:
- Guaranteed, predictable income for life.
- No need to manage investments.
Cons:
- Limited flexibility or control over the funds.
- Payments stop when you or your beneficiary passes away, depending on plan terms.
Lump Sum Rollover into Fixed Index Annuity:
Pros:
- Don’t give up control over your retirement accounts.
- Offers income planning in retirement with potential inflation protection.
- Funds can grow tax-deferred with market-linked interest.
- Beneficiaries can inherit the remaining funds as a lump sum.
Cons:
- Investment performance may vary depending on the annuity’s terms.
- Early withdrawals may result in penalties.
Other Maryland Resources
- Explore Maryland Retirement Planning Resources
- Estimate Maryland Retirement Income Taxes
- Compare Maryland Annuity And CD Rates
- Compare High-Yield Savings Accounts In Maryland
- Compare Long-Term Care Insurance In Maryland
- Compare Life Insurance Rates In Maryland
- Contact Maryland Insurance Administration
- Contact Maryland Division of Securities
- Learn About Protection From Maryland Life & Health Insurance Guaranty Corporation
Why Choose The Annuity Expert?
Our retirement planners specialize in finding the best solutions for your unique retirement. Whether you want to transfer or rollover your retirement accounts or fund with cash, we help you shop for the best options for your needs. Before you buy, use our calculator and book a no-obligation consultation.
Estimate Maryland Pension Annuity Payments
Book a Call with our retirement planners for a free, no-obligation consultation to find the perfect solution for your unique retirement needs.