Retired / Surplus AT&T Managers, when did you have to choose Lump vs. annuity at separation? The day of your exit package, or sometime later?
My supervisor didn't know and I can't seem to find this info on HR One Stop.
Thanks!
19 replies (most recent on top)
Take the lump sum and do a direct roll into an IRA. I used Fidelity which handled everything. They will manage the money for you but you can save 1% a year and just buy a few total market ETF's. The annuity that they offer does not have any cost of living increase so in 20 years the buying power will be cut in half. If you are going to do the annuity route take the lump sum and buy one outside what they offer that has the COLA.
I retired in 2024. Fidelity handles everything to do with your pension. Your supervisor or HR won’t help. You don’t have to decide when you leave, but can wait before deciding how to take the pension. Call fidelity and have them run your numbers.
"Mentally a bit of a hurdle to cross for guaranteed monthly amount vs. stock market fluctuations."
More than mental to those who study history. The markets have had a ki-ler run to date, recency bias is real. Those who know understand that bear markets are a thing, as is sequence of returns risk, so a guaranteed 9% looks very attractive if you really don't need the money now.
@fq - "Always, always take the Lump Sum. Take your money and build a solid IRA and watch it grow. Easy to do."
Mentally a bit of a hurdle to cross for guaranteed monthly amount vs. stock market fluctuations.
You make that decision at the time when you decide to take your pension. I imagine it may depend on the plan, but I left earlier this year and still have not taken my pension. My FA advised me to wait until 2026 due to the expectation interest rates may be lower which impacts the lump sum payout.
Always, always take the Lump Sum. Take your money and build a solid IRA and watch it grow. Easy to do.
You can decide/choose whenever you want to. I retired in 2019 and I decided in 2021. There is no hard date. During those two years, the lump sum went up a LOT and I rolled it over to an IRA. I was working elsewhere and I didn't need the annuity to pay bills. I just withdrew some of the lump sum in 2025 as I am delaying SS to 70. Without kids or family members to inherit your lump sum, it is probably best to get the annuity with survivor. My kids will inherit most of it and that made 42 years at T worth the stress that they put on me.
@ak bless your immature heart. Employees 50 and up in age or more that 20 years were in the office for decades before you were born. Get over yourself and get a clue
I believe if you are vested and eligible for a pension (Fidelity being the custodian), you choose the date of your choice anytime after your departure for when you want to commence your pension. I retired in 2018, but held off until 2019 to commence mine.
I assume that may be the same for you. Best to check with fidelity.
Be advised that if you take the annuity option, fidelity could eventually transfer your annuity to an insurance company (Such as Athene).
@ak Are you feeling bad about yourself and not having a pension?
"Looks like this is a boomer only thread. I will see my way out."
Off to your safe space to fo---e your participation trophies?
OP here...
In my case the decision is not cut and dried. I was simply asking if anyone here had recently been through the process.
I use an hourly fee-only 100% fiduciary planner. I have other assets, including a substantial 401(k) balance and my retired wife's 403(b) and pension. I have no kids, zero debt, and few extended family members.
When we looked at it last year, if I took the annuity pension with a 100% survivor benefit for my wife and waiting until 70 for my SS, we'd still only draw about 1% off the other assets, which would be invested 60/40. Right now, the annuity would pay almost 9% of my lump balance, with the only risk being longevity as my annuity would be less than PBHG guarantee limits.
Advisors that charge wrap fees based on assets will nearly always say to choose the lump because they make more money, and ALWAYS if they aren't 100% fiduciary.
BTW... I'm not a Boomer, I'm mid-50's GenX. ;^)
Thanks!
@am But you see, if OP knows the correct answer, then when to make the decision is moot. Its lump sum, Tell Fidelity today.
OP isn’t asking about lump sum v annuity (though I happen to agree in the lump sum, as do most FAs).
He’s asking when he needs to decide which option.
Some of you really struggle with reading comprehension.
Looks like this is a boomer only thread. I will see my way out.
P.S. Thank you for staying with the company for the past 50 years. You are the reason why we have RTO.
I retired end of 2022. I was advised by Fidelity to take the lump sum (pension) and convert to an IRA. This worked out great.
Take the money and run.
Lump sum is mathematically superior for most people but it depends on which retirement plan you were hired under.
Request to join the Facebook group: “AT&T Retirement Planning Club” . There are a couple real knowledgeable folks there that are really helpful.
I have seen that question come up before and I am reasonably sure that it NOT a decision you need to make before or at the day of your separation.
But def verify with Fidelity and check out the group I mentioned.
And stop wasting your time asking your supervisor anything. They are not equipped to answer any of those types of questions. They are just happy their name wasn’t pulled, and are reading you the script(s) that are provided to them.
Plans differ depending on the legacy company etc. Your age and years of service are variable factors. Call your plan administrator, most likely it is Fidelity, they can advise you accordingly.