ATTENTION: Pension Employees Nearing Retirement and Timken Company and Timken Steel Employees Nearing Retirement
RETIRING NOW COULD BE YOUR BEST FINANCIAL OPTION
If you are a participant in a PENSION PLAN that provides a LUMP SUM retirement option, your lump sum amount may be significantly reduced starting in January 2023. You must act now, as the deadline for requesting retirement paperwork is fast approaching.
Interest rates increased dramatically in 2022 and will trigger a dramatic drop in the potential payout ahead for those who choose the lump sum pension option next year. Postponing retirement into next year could result in a 20%-25% reduction in the lump sum amount available to you. You deserve to know how this reduction might affect you. So, for example, if someone is looking at $500,000 lump sum payout in 2022, the loss in 2023 could be in the range of $100,000 to $125,000.
If you are considering retiring and choosing the lump sum option, it is important to understand the impact of higher interest rates on your individual lump sum amount, should you delay retirement next year and even into 2024 if interest rates remain high.
Contact us to learn the steps you must take to maximize your options. Greenport Financial Advisers is an investment firm providing disciplined investment strategies to help you navigate retirement. We are a fiduciary and do not sell commission products.