Lump Sum Pension Offer

[KC Maybe]

Hello,

I have a vested retirement at a company I no longer work for. They are currently offering me a lump sump payout of $37,327.74 which I could roll over tax free into my current Vanguard IRA or I can wait another 24 years until age 65 and start collecting $885.81 per month.

I've been researching which is the better option. What would you do.

I no longer work outside the home and my husband will retire in five years.

Looking forward to your thoughts.

Thanks,
KC

[snuka]

I recently posed the exact same question on this forum and the consensus was to take the buyout.  Even moreso if the future payout amount is not adjusted for inflation in years after the payments start.

[MDM]

If you think inflation will be high, and/or you can get very good investment returns, take the lump sum.

If you think investment returns will be poor, and inflation low, take the monthly pension.

See http://forum.mrmoneymustache.com/ask-a-mustachian/my-past-employer-is-offering-me-a-lump-sum-pension-buyout-do-i-take-it/msg1237034/#msg1237034 as part of snuka's thread: your breakeven also is a little over 6%....

[Tjat]

The company likely wants to remove debt obligations to (maybe to look more attractive for a buyout?). Try countering for a 50k payout and see what they say

[ender]

The company likely wants to remove debt obligations to (maybe to look more attractive for a buyout?). Try countering for a 50k payout and see what they say

I never would have thought to counter on a pension buyout, is this actually a reasonable idea?

I have something like $25k worth of NPV in a previous employer pension, too, it'd be nice to get that cashed out and rolled into an IRA. But if I could ask for a bit more - bonus!?