Keeping or Rolling Over Your Pension
When you leave a job, you typically have two main options for your pension:
- Keep the Pension Where It Is: You can leave your pension funds in your former employer’s plan. This choice might be beneficial if you’re satisfied with the plan’s investment options and fees.
- Roll It Over to an IRA Annuity: This involves moving your pension funds into an Individual Retirement Account (IRA) annuity. This option offers more control and potentially a wider range of investment choices.
Opting for a Guaranteed Lifetime Withdrawal Benefit (GLWB)
Choosing a GLWB with your IRA annuity can be advantageous if you prefer a guaranteed income. The benefits include:
- Accurate Forecast of Retirement Income: GLWB lets you know exactly how much income you will receive in retirement, providing financial security.
- Control Over Money: You have the flexibility to make changes to your investment choices within the annuity.
- Interest Earnings: The possibility of earning interest on your annuity balance can help grow your retirement savings.
- Liquidity: Some plans offer options to withdraw some of your funds without penalties.
- Death Benefit for Beneficiaries: In the event of your death, your beneficiaries can receive a specified death benefit.
Pension Options Comparison
|Control Over Funds
|Depends on Plan
|Yes (Based on Plan)
|Varies by Plan
|IRA Annuity without GLWB
|Depends on Policy
|IRA Annuity with GLWB
Choosing between keeping your pension with your former employer or rolling it over to an IRA annuity, with or without a GLWB, depends on your preference for guaranteed income, control over your investments, and other financial needs. Assessing these options carefully will help you make an informed decision that aligns with your retirement goals. Contact us today for a free quote.
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