Smart Management of Retirement Income—Selecting Payout Methods
One big change that retirement brings is you begin to take income from your defined benefit pension or defined contribution plan. You have to consider various payout methods, or the ways in which the income will come to you. The right alternative for you, or you and your spouse if you’re married, depends on a variety of factors such as your other sources of income, your comfort level with investment risk and even your health.
When you retire from an organization that offers a pension, you generally have at least two options:
- taking a pension annuity and receiving a monthly check; or
- taking a lump-sum distribution, which you will need to invest or roll over to an IRA—and manage to ensure a secure retirement.
|Pension Payout Checklist |