Pension Options Decisions – Should I Take My Pension As A Lump Sum?

2026 · SHOULD I TAKE MY PENSION AS A LUMP SUM?
Compare your plan’s lifetime income quote to alternatives available in the open market, and consider strategies paired with life insurance.You may be able tochoose between a single life annuity and a period-certain life annuity (which could offset loss due to an untimely death).Consider taking a lump sum to maximize the value that you receive.Consider taking a lump sum to maximize the value that you receive.Consider taking a lump sum if you have serious doubts about theviability of your plan (understanding what protection, if any, may be offered by PBGC or your state, etc.).Consider taking a lump sum to take ownership and control of the assets, with the ability to transfer any amount remaining at your death.Does the value of the lump sum exceed the value of the lifetime income that you expect to collect? To defer income taxation, roll the distribution to an IRA or qualified retirement plan when possible.Note that you may need to take RMDs and will assume all investment risk.Are you married?Compare a single life annuity to joint and survivor options, considering paymentsof 50%, 75%, or 100%after your death.Do you want the ability to transfer your pension assets to your heirsas a legacy?Are you concerned about overspending and/or longevity risk?Consider choosing a lifetime income option to guarantee a steady income stream throughout your lifetime.Consider choosing a lifetime income option to maximize the value that you receive.Consider choosing a lifetime income option to maximize the value that you receive.YesNoDo you have health issues or other concerns that your life expectancy (or joint life expectancy, if married) might be shorter than average?Do you trust that the financial health ofyour pension plan is reasonably secure?Will your other sources of retirement income (e.g., Social Security, investment accounts) cover your expected fixed costs in retirement?YesNoNoYesYesNoYesNoNoYesYesNoDoes the value of the lump sum exceed the value of the lifetime income that you expect to collect? YesNoSTART HERE
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Birch Street Financial Advisors is an Investment Advisor registered with the State(s) of  Virginia.  All views, expressions, and opinions included in this communication are subject to change. This communication is not intended as an offer or solicitation to buy, hold or sell any financial instrument or investment advisory services. Any information provided has been obtained from sources considered reliable, but we do not guarantee the accuracy, or the completeness of, any description of securities, markets or developments mentioned. We may, from time to time, have a position in the securities mentioned and may execute transactions that may not be consistent with this communication's conclusions.  Please contact us at 703-319-8778 if there is any change in your financial situation, needs, goals or objectives, or if you wish to initiate any restrictions on the management of the account or modify existing restrictions. 
Joanne Burke, CFP®, CPA/PFS
705 Birch ST SW Vienna, VA 22180-6308
Joanne@Birchstreetadvisors.com | 703-319-8778 | www.Birchstreetadvisors.com