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Pension buyout offer: Annuity or lump sum?

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Halbrook, Andy 2016.jpg

If you participate in a pension plan at work, you might be offered a buyout at some point. This could happen if your employer wants to shrink its future pension obligations or if your company has been bought, and your new employer decides to terminate your existing pension plan. In either case, you will likely have two main options: You can take your pension as a lump sum of your accrued benefits, or you can convert it to an annuity, which can be structured to provide you with a lifetime income stream. Which choice is best?

There’s no right answer, but here are some factors to consider: 

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