Is a lump sum offer from an employer a better choice than a pension annuity for life? interest rates), various assumptions can tilt this analysis in favor of a lump sum or a pension annuity. A pension annuity typically does NOT inflate, but investing proceeds in a lump sum – and growing them effectively – can protect better against inflation over time. The answer is: pension annuity for the majority of my clients — particularly variations of a 75% joint and survivor pension annuity if my client is married. Even if pensions don’t inflate, the pension annuity may be a more secure and superior option to taking a lump sum.

Source: Forbes November 22, 2016 18:47 UTC