Compare Missouri’s Monthly Pension Payouts vs. Lump Sum IRA Rollovers
Missouri public employees face an important decision when they retire—take the pension annuity from the Missouri State Employees’ Retirement System (MOSERS) or roll over their pension into a personal annuity with a Guaranteed Lifetime Withdrawal Benefit (GLWB). The wrong choice could mean lower income for life, zero flexibility, and no legacy for your loved ones.
Use our Missouri 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 income in retirement and maintain control over your accounts.
Below will estimate how much annual income you’ll receive if you roll over the Missouri State Pension to your own IRA annuity with a GLWB.
Calculator Purpose
The Missouri 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 aids in income planning in retirement, allowing you to 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: You’re About to Retire From a Missouri State Job
You’re eligible to start receiving pension income from MOSERS or MPERS. The state offers you a fixed monthly income for life, but no control over your money, no ability to adjust income later, and little or no death benefit to leave your spouse or family. You’re wondering if you could do better by choosing a personal annuity instead—and you can.
Roll Over to a Personal Annuity With a GLWB
Get up to 8% income base growth and a higher lifetime income potential
A personal annuity with a Guaranteed Lifetime Withdrawal Benefit (GLWB) allows you to roll over your pension lump sum into a contract that grows your income base by up to 8% annually until you activate lifetime income. This income is guaranteed, just like a pension—but with added benefits the state plan doesn’t offer.
Pros:
✔ Up to 8% income base growth before withdrawals
✔ Guaranteed income for life (like a pension)
✔ Choose single or joint lifetime payouts
✔ Leave the remaining balance to your heirs
✔ Maintain control of your funds
Cons:
✘ Income depends on the insurance carrier’s current GLWB rate
✘ Not available if you already started taking the pension annuity
Who Needs It:
- Retirees who want the highest possible income for life
- Anyone who wants to leave a legacy
- Those concerned about inflation or long-term care costs
Who Doesn’t:
- Retirees who already chosen the state’s annuity and can’t roll over
- Those who need immediate access to a large portion of their funds
Also Consider:
You can use funds from a lump sum pension rollover, IRA, 401(k), or 403(b) to fund your personal annuity.
Keep Missouri’s Pension Annuity
Accept the state’s monthly payout with no control or legacy
If you don’t roll over, you’ll receive a monthly income for life from MOSERS or MPERS. While stable, this option has several downsides.
Pros:
✔ Simple and immediate income
✔ No decisions to make
Cons:
✘ No control over your money
✘ No death benefit after your passing (unless you elect a reduced survivor option)
✘ No ability to increase income later
✘ No inflation protection
✘ Cannot be adjusted once started
Who Needs It:
- Retirees with no heirs and simple needs
- Those who want no responsibility for managing funds
Who Doesn’t:
- Anyone seekinga higher income or flexibility
- Those who want to protect their spouse or leave an inheritance
Helpful Tip:
Many pensioners regret not rolling over once they understand the long-term cost of lost income and flexibility.
Why Most Retirees Choose to Compare First
Many retirees don’t realize that personal annuities with GLWBs often pay more income than pension annuities, especially if you delay the start date. You also retain control of your account and can pass on the balance to your spouse or children—something Missouri’s pension cannot offer if you take the single-life option.
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 Missouri Resources
- Explore Missouri Retirement Planning Resources
- Estimate Missouri Retirement Income Taxes
- Compare Missouri Annuity And CD Rates
- Compare High-Yield Savings Accounts In Missouri
- Compare Long-Term Care Insurance In Missouri
- Compare Life Insurance Rates In Missouri
- Contact Missouri Department of Commerce and Insurance
- Contact Missouri Securities Division
- Learn About Protection From Missouri Life & Health Insurance Guaranty Association
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 Missouri Pension Annuity Payments
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