"I am a single 60-year-old woman with $10,000 in a Simple IRA from a previous employer and $75,000 saved in a 401K from another previous employer. I recently started a new job, contributing 20% per month in a 401k. In the past, I worked for 18 years at a hospital and have a vested pension there. I have been informed that they are closing the pension fund at the end of the year (my vested amount is estimated at around $30,000). These are the options I was given: 1) payout in a lump sum, 2) convert to an annuity and receive around $200/month, or 3) roll over into my current 401K. I currently have an emergency fund of around $30,000. I was initially planning to roll the pension into my 401K, but wondering if I would be better off taking the lump sum, add $20,000 cash with it, and purchase an annuity?
Stay up-to-date with the latest in employee wellbeing from the desk of Pete the Planner®. Subscribe to the monthly newsletter to get industry insights and proven strategies on how to be the wellness champion your team wants you to be.
