How Rising Interest Rates Should Impact Your Pension Decision (Lump Sum vs Annuity)

How can rising interest rates impact your pension value? In this week's episode, we analyze a real-life scenario from our listener, Mark, who is weighing the pros and cons of an early retirement, a higher lump sum, or a commit to an annuity. Learn how to calculate the imputed returns of an income annuity and how to determine if taking the lump sum and investing it would be the better option. Questions Answered: What considerations and calculations can be used to decide between a lump sum payout or an annuity? Are you working against yourself by continuing to work? Timestamps: 0:00 Intro 2:40 Mark's question 4:24 Unpacking it 7:38 Don't do your analysis this way 14:09 Here's how to do your analysis 18:54 Risk 19:58 Planning 20:50 Takeaway 24:47 Outro Create Your Custom Strategy ⬇️ Get Started Here. Join the new Root Collective HERE!