Should I take my Pfizer, Inc pension as a lump sum to let Fidelity invest or as a monthly payment from Pfizer?

Answer 1

In Short, No!!!!

If you move that money, you lose all guarantees and you gain very little.

Yes, you may be able to make more if you roll it over into a varialbe annuity, but you also risk losing it.

A fixed annuity will not pay you any more than the pension will.

Added to that is the risk of Fidelity defaulting on it. If Fidelity where to go out of business you would lose it all.

Pensions do not face this problem as all pensions are insured by the federal government. So, if Pfizer were to go out of business, declare bankruptcy or otherwise default, the government would assume payments.

Also, there have been some interesting studies showing that pensions earn a higher rate of return for those covered than a 401K does.

As 401Ks are invested like your money would be if rolled over, it shows just how much better pensions are handled.

Much of this due to the fact that companies are not only investing the pension funds, but are also adding more funds annually to help cover the costs of rising retirement levels.

Answer 2

Pfizer Pension

Answer 3

This is a complex question and you would be wise to consult a Certified Financial Planner for advice.

Many questions need to asked and answered: What is your age, what is you life expectancy? What is the Net Present Value of the annuity stream? What risk tolerance do you have? What rate of return would you expect from Fidelity? Are you married? If you die, what percentage of the Pfizer pension would you spouse be entitled to? Do you have other retirement assets? What will you receive in Social Security benefits?

Those are just SOME of the questions that you need to consider.

Good luck!

Answer 4

IMHO It depends on how much it is. I worked for one of the companies years ago that rolled in to Pfizer. My "pension" when I "retire" will be 220 a month... I could use the money now in spite of the penalties that come with not rolling it into an IRA and it's not likely to amount to a lot in my case. Each case is different. DO your research online and make an informed choice once you have the numbers or PAY your hard earned money for someone else to tell you what to do.