Which is better.... to receive a pension as a one off lump sum payment, or to receive it in installments when I reach the retirement age ?
2006-12-01 07:49:51 · 7 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
It depends how long you intend to live for ?
If your parents lived into their 80s or 90s, then go for the instalments, but if they did n´t make it far beyond 65 then go for the lump sum, I mean do you smoke, drink like girls etc ?
Then go for the lump sum, Check into a top hotel with a big bag of a coke and a couple of high class hookers…
2006-12-01 08:13:44 · answer #1 · answered by JayEleven 3 · 2⤊ 0⤋
See if you can get a part lump sum to invest then take a smaller amount in instalments then it's not a case of putting all your eggs in one basket. Your personal health comes into it,see if you can work out how many years you would have to live before you equal the lump sum,sorry if that sounds morbid. And also see if you take instalments if you can insure it for say 10 yrs,so if you died after say 3yrs your family could benefit for the remaining 7yrs. Some pensions offer this option.
2006-12-01 08:11:02 · answer #2 · answered by Anonymous · 0⤊ 1⤋
This surely relies upon on the kind of human being you're...Do you pick to make investments, or are you the shape that likes to easily get carry of a month-to-month examine and pay your charges and performance exciting with it? once you're the first kind of human being take the lump sum, because you could make investments a majority of your take abode and interior 10 years have that money making extra money in line with 12 months than the 20 12 months pay-out option will ever provide you with, and it gained't end after 2 many years, as long as you guard your investments. once you're the 2d form the 20 12 months pay-out option will be perfect because you'd be the shape that would want to have a 30 something million dollar hollow burning on your pocket. The tax implications are literally not very distinct, also keep in mind that as time is going on money will be properly worth a lot less (referred to as inflation), investments take inflation in to interest, the lottery 20 12 months pay-out option does no longer.
2016-11-30 00:44:12 · answer #3 · answered by schiavone 4 · 0⤊ 0⤋
Your answer is dependent on how you answer this question. How much do you have in your checking, savings, IRA's, and investment accounts? If you said zero or less than $10,000 to three of these choices you should receive the monthly installment. If you said greater than $20,000 to at least three of these choices then you should receive a lump sum and place it in your investment portfolio. If your answer is somewhere in between then the choice is yours.
2006-12-01 09:31:15 · answer #4 · answered by joe s 2 · 1⤊ 0⤋
I would go for the payments. You never know how long you will live, and if you get the lump sum you might plan badly and spend too much of the money too early, then be left wondering what you should do.
~Kyle
2006-12-01 07:52:54 · answer #5 · answered by Kyleontheweb 5 · 0⤊ 1⤋
It depends on what you want to do with the money.
Installment payments may be better, as it helps you to budget and keeps you from being tempted to spend more than you can afford to. This is very easy to do when you first retire, because you've been so used to having more money to spend most of your life.
2006-12-01 07:53:49 · answer #6 · answered by Ambassador Z 4 · 1⤊ 0⤋
depends what you plan to do, if its installments then its gonna last longer
2006-12-01 07:53:05 · answer #7 · answered by Anonymous · 0⤊ 1⤋