Voluntary Separation Timing

Also the IRS website tracks the interest rates that back the pensions under Min Segment Value Rates. Here is the IRS site to track-

Minimum Present Value Segment Rates | Internal Revenue Service

Also after the election in Nov then rates will go back up. If Trump wins it will go up to offset the massive covid debt created. If Biden wins rates will skyrocket. Either way, rates going up 1st of the year.
Now is the peak of your Pension value if you want the Lump Sum.
If you let Pfizer keep your Pension money as their asset & just pay you a monthly pension payment then rates have ZERO effect on your monthly pymts. You monthly pymts are fixed & baked. Interest rates just effect your Lump Sum payout of millions.

 

Here is an easy way to analyze all this low interest rate impact on Pension Value.

- 1st the Pension calculator on Fidelity is just for current rates so can not predict future rates even if you put in 2030 for retirement date ( btw rates will be lot higher in 2030 so the amount shown could actually be half in 2030)

- ON $1 MILLION FOR EVERY 1/4% INTEREST RATE MOVE, YOUR PENSION MOVES $50,000.
SO A FULL 1% MOVE ON A MILLION IS 200K.
So you can see if rates just goes from current 0% to 3.5% like it was just 2yrs ago in 2018, a million dollar pension now will be 600k or loosing 400k at 3.5% rates---- and 3.5% is still very low interest rate but not the near 0% we have now.
(If you have 2million or more now at 0% then at 3% interest rate you have lost 500k half a million )

- at near 0% your pension can not go up much more in value (for the lump sum) but can dramatically decrease when rates go back up after the election.

 

Coming from a complete moron living in his mother’s basement...LMFAO!
You clowns will be unemployed soon, so the pension advice is moot because you are never going to see one. I, on the other hand, Mr. Head Up Your Ass, have a nice pot of gold that I will take as a lump sum while you will be living on your mommy’s alimony and government charity.
Enjoy!

 

Look up "Social Security Leveling" which begins at age 65 - if you choose the annuity

 

The only stupid one is you. Annuities are a sucker’s bet....company pension or any other. Most companies don’t offer lumps for a reason.....it benefits them to keep your money more than you. The company makes the real money, and give you the scraps.

 

Relying on anonymous cafepharma posts makes no sense for important financial decisions. Looking at earlier posts, there are many assertions that are simply not true. Rather, start with neutral articles such as https://www.kiplinger.com/article/retirement/t037-c000-s004-retirees-weigh-a-pension-lump-sum-offer-carefully.html

Someone posting here could easily be a financial planner who would just love to get their hands on your money and management fees.

 

Lump sum is definitely the way to roll. Just remember if you are Pfizer Legacy you lose 4% per year less age 65. Meaning if you are 55, you would lose 10 yrs. x 4% = 40%! This has been explained many times by Fidelity in their workshops. You can also easily see this if you use the retirement modeling tool. So, if you are this close to rule of 90 and are only a few years away you would be wise to see how this things shake out! If they give you 5 points like they did previously you could potentially retire with full benefits. Currently the rule at age 55 assuming a $1,000,000 lump sum would only have you collect $600,000 with the penalty. Interest rate increases penalizes the pension also so you would need to weigh the differences. It will be interesting to see after covid if they bring back a separation package in 2021. The optics would look bad for PFE to do a lay-off while also having a potential vaccine. Hey, they are ordering and delivering new iPads and computers so maybe the layoffs are further down the road . . . We shall see.

 

True except you left out that if interest rates go up to 3-4% after the election just level it was 2yrs ago then you loose 40% balance anyway! So 10yrs retire 40% but with rates 3-4% you loose 40% which likely to happen in 2021.
The fidieity modeling shows current rates for future, even is 2030 2040-- it is current rates of near 0% to calculate.
Hint rates will NOT be near 0% in 1yr let alone 10-20 yrs.

 

(Rule 90 pentalty is 3.5% as i took it last year at 50. At rule 90 would been 1.8mil but took the early at 50 so lump sum was 1.2mil.... in the past 18months i have turned 1.2mil to 1.6mil & in 1 yr basically made up the loss. But if rates gone to 3% then in 12yrs my payout would only been 1.2mil anyway so might well take 1.2mil now & invest it.
This is the one thing pfe reps do not understand is how interest rates effect pensions value. If calculator says 1mil in 10yrs 2030 then that is off of todays 0% rates.
In 10 yrs guarentee rates will not be 0% as only went from 2% to 0% this yr to help offset covid impact w economy. So next yr your pension could drop 20 30% when rates go back up.
And you can make 3% return investing your ira pension a year to offset any 3% rule 90 pentalty.

 

Take your lump, cash it, go to casino, put all on red, spin the wheel, go home crying and poor

 

Of course Fidelity pushes for the lump sum option. They want your money!

 

Dude go back to your average measly life.
Fidelity doesnt push lump sum!
And most who take lump sum pensions end up with a money manager or Blackrock or something other than Fidelity.
I can tell you will never be anything but a paycheck to paycheck person.
Your financial IQ is zero.
Dumb & dumber are smarter than you.

 

And that is why you are were you are. A pfizer rep, probably a former Contract Sales Rep who came over.

Leave the thought provoking insights to those who are educated while you keep in a life of quicksand w conspiracy theories

 

Nah, going do double zero. Make it a little fun since I've doubled my Pension in last 5yrs from 1.5mil to 3.2million, so going to double down.

 

bullshit. That is an annually compounded 17% rate of return. If you were that good, you would be the king of wall street

 

Actually it’s closer to 14%... but the main point is whether it’s 1.4% or 14%, it’s gonna be more than a static pension... but yeah if I knew someone who could make 14% compounded for five years I’d be impressed and investing.

 

Nobody gains an average 14% over a 5 year period. So whoever called that BS is on target.