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Deciding If a Lump Sum Pension Payout Is Right for You

Joe Allaria 1

As employees covered by defined pension plans approach retirement, companies are looking for ways to remove themselves from their obligations by offering pension buyouts. For example, instead of providing the retired employee with an income stream for life, the company may offer the retired employee a lump sum instead. To some retirees, that lump sum payment can be quite enticing.