Jill on Money with Jill Schlesinger Pension Lump Sum or Annuity?
5 snips
Jan 5, 2026 What should you do with your pension: take a lump sum or an annuity? Explore Amy's retirement timing and the implications of health insurance coverage before Medicare. Delve into the calculations of her income needs, Social Security, and hefty retirement assets. Jill suggests leaning towards the lump sum option due to the potential for growth and personal legacy goals. Plus, key estate planning reminders to ensure a smooth transition into retirement. Tune in for practical advice filled with financial wisdom!
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Favor Lump Sum For Flexibility
- Do consider taking the lump-sum pension if you value leaving assets to your children and prefer control over investments.
- Jill recommends the lump sum here because Amy already has substantial retirement savings and a mortgage-free home.
Real-World Three-Million Nest Egg
- Amy reports about $3 million across retirement accounts plus a $640K mortgage-free home and rental income.
- This personal example illustrates how disciplined saving produces abundant retirement options.
Guarantee Versus Legacy Trade-Off
- A guaranteed annuity simplifies cash flow but may offer no cost-of-living adjustment and limited legacy value.
- Jill frames the annuity as convenience versus the lump sum's inheritance and flexibility trade-off.
