Rising Interest Rates Are Changing Pensions for Some Retirees

Higher interest rates are good for our cash and checking accounts but not always good for pensioners. The increase in interest rates has an inverse relationship with the lump-sum value of the pension. yip interest rates increased, the lump sum value of a pension container can be reduced. Because of this, I am looking at pension holders who want to take a lump sum to do so now vs. waiting.

I also see annuity rates increase with rising interest rates, pushing the annuity income to potentially be higher than the pension income (see chart below). There is a lot to consider if you have a pension now. Let’s review.

Pros and Cons of Taking Lump Sum

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