Are you management or union? Have you taken (or planning to take) Full Lump, Partial Lump, or Annuity? And why? And, if already taken, any regrets?
31 replies (most recent on top)
Lump sum. Dont trust T. They'll probably sell it off to some sketchy third party.
Retired in October 2022 and took the lump sum. It will definitely grow throughout the years compared to getting a fixed annuity for life. I split mine to two portions because I want to be on the conservative side. One portion I put in short-term annuity (works like a CD) and took advantage of the interest rate and in case I need to distribute. Took the 3 years at 4.2% and it matured December of 2025. Renewed it again at 3.8% for another 3 years but only the principal. The interest I made out of that I added it on the managed account by my broker Fidelity. Yes the other portion of the lump sum, I let my broker manage it - dividend income strategy. I also left my 401k with AT&T and I'm seeing positive results too. As of this writing, I am not 59.5 years old so I did not take any distributions yet to avoid the 10% penalty. Although there is the rule of 55 which one can take advantage of if one is not working and need some funds to get by. Another reason I did not take any distribution is because I was lucky enough to have worked for another company. This is not financial advise - I am just sharing what route I took. Consult a financial advisor you can trust and compare their fees with other financial entities!
If you can balance your checkbook, you can manage your 401K/Pension which has to be rolled into an IRA. Take the lump sum. You might need a new car, fix your house etc. An annuity only gives a fixed amount. Plus you can still make money on your lump sum. Put it in a CD bank account if you're fearful or want to invest less aggressively.
Lump sum - three reasons, I don’t trust AT&T anymore, I control my own financial destiny and three, something to leave to my children if I die. . . .
Management, retirement eligible but hoping to stay on a while longer. Most savvy financial people I read advise on taking a lump sum when that's an option, and rolling it right into an IRA. That's what I am planning on doing.
"To the clown advising to take limp sum and go to an insurance company for an annuity. Insurance companies do not have the same fiduciary responsibility as a Certified Financial Adviser. Choose wisely."
And to the person that posted the above, Insurance contracts are guaranteed by your state!
For crying out loud, please get educated!
"Take the lump sum, go to Atlantic City and triple your money quickly."
As bad as the person that does not know that taking the pension as an annuity is an annuity.
"Take the lump sum, go to Atlantic City and triple your money quickly."
Consider yourself a weasel with input of no value!
Take the lump sum, go to Atlantic City and triple your money quickly.
In my opinion the main reason to take the lump sum option is the monthly pension payment does not offer a cost of living adjustment (COLA). This is a big issue you need to consider carefully. The existing AT&T retiree pool just saw their purchasing power decrease 8-10% by the increase of inflation. It also means you need to manage the lump sum payment to keep pace with inflation and some growth. These are easy terms to understand, but it will require homework on your part.
just know that you are not guaranteed to receive the same payment from PGB
You'd truly need a platinum pension to exceed the PBGC limits. Some aircraft captains etc. eventually manage the feat, but your average T employee has zero chance.
Retired Sept 2021, Management, took lump sum and rolled it into IRA with a financial group I trust.
To the clown advising to take limp sum and go to an insurance company for an annuity. Insurance companies do not have the same fiduciary responsibility as a Certified Financial Adviser. Choose wisely.
"Please stop using the term "annuity"
Has got to be an AT&T employee!
I find it hard to believe anyone could be that stupid, but okay, I'm taking the monthly stipend in liew of the lump sum from T.
Please stop using the term "annuity" payment unless you are specifically meaning you are personally purchasing an annuity from an insurance company.
None of the at&t companies will purchase an annuity for you.
NONE OF THE AT&T COMPANIES PURCHASE AN ANNUITY IN YOUR NAME.
Please be accurate and say "monthly payment". If you are not accurate you might confuse people that are too lazy to investigate what they are actually being offered.
I took non-management lump sum earlier this year because I believed it was the most advantageous time for my particular age. Absolutely no regrets except I do miss working, I always liked having a purpose other than just myself and my home.
And, for people saying the PGBC will take care of you in the event of T deciding to stop the monthly payments, just know that you are not guaranteed to receive the same payment from PGBC. You would receive something but it most likely will not be as much, and if there is recession ahead there will likely be many companies throwing in the pension towel and dumping people onto the PGBC. I do know of a few peoples family members that have been in "promise to pay" pensions (U.S.Steel years ago, a large national airline, and a railroad company) that have been dumped onto PGBC and they have ended up in a very bad situation as far as depending on their pension and now receiving half or less than they were.
If you desire to have an "ACTUAL ANNUITY" it is far better to take your lump sump and roll it into an IRA, then interview with several top insurance providers and have them craft an actual "annuity" for your specific and individual wants and needs. You don't have to have just one company, you can have several with different attributes but I believe this is a far more secure future than just accepting the promise of T to pay you.
But PLEASE stop using the term annuity pension unless you are talking about YOU actually purchasing an annuity, there are way too many lemmings that just blindly believe that your company will purchase an annuity for you. They will not....
Management here, I plan to take the annuity. I don't trust myself, don't want to spend my lump sum and have nothing but SS to live on. I can spend money faster than I can make it.
@ezr+1i3EFd4Q said " However, I would keep my current $750K term life insurance policy in place and pay the insurance premiums with the savings from taking the 50% survivor vs 100% survivor ATT annuity option"
You may want to call and ask what they would charge monthly for 750K after you retire. I had life insurance when before I retired and I called after retirement, for only 250K, and they quoted me $350 a month and I was only 60. Your quote may be more than you thinking it may be. I was management so maybe it is different if you are craft.
"If you really want an annuity, you will find at this particular time you can take the T lump, and buy a much more attractive annuity from an insurance company. The insurance companies also have many more options like guaranteed cash back if you pass early. You can look at the schwab site https://www.schwab.com/annuities/fixed-income-annuity-calculator if you want to run some scenarios. Fidelity also has a public site to get pricing."
Exactly what I did. I took the lump Jan 1st, 2021, invested in a balanced fund, and now in 2022 the Insurance company Single Premium Immediate Annuities (SPIA) pay out more than the Pension Annuity, So I just rolled a portion into a SPIA from a top rated (A++) insurance company that includes a death benefit and 2% inflation increase each year. Also, Insurance annuities are protected by your state guarantee.
Classic S management here.
If you really want an annuity, you will find at this particular time you can take the T lump, and buy a much more attractive annuity from an insurance company. The insurance companies also have many more options like guaranteed cash back if you pass early. You can look at the schwab site https://www.schwab.com/annuities/fixed-income-annuity-calculator if you want to run some scenarios. Fidelity also has a public site to get pricing.
Management here.
When it’s my time, I will take the lump so that I can control and manage it.
My plan at the moment is to roll it into an IRA.
Everyone is eligible to retire when you have a cash balance in your pension - management. You do no have to wait until MR75.
I’d like to work 3 more years (I’ve already hit rule of 75). I’ve been thinking about taking the annuity in 3 years with 50% survivorship. However, I would keep my current $750K term life insurance policy in place and pay the insurance premiums with the savings from taking the 50% survivor vs 100% survivor ATT annuity option. Thus if I die early, my ATT annuity will drop to 50%, but my wife would get the life insurance proceeds which would more than make up for the reduction in annuity between the 50% and 100%.
I thought about leaving last year to keep my subsidized medical, however in hindsight it was wise to stay since I probably would have lost $150K+ had I put my lump sum in diversified portfolio.
37 years in craft. Took the lump 7 years ago.
Rolled it in to a 70% safe/30% risk IRA.
Doing OK...even with Brandon.
I don't trust AT&T to maintain the pension fund.
Nor should you.
Get the lump, walk away with zero strings.
Legacy S management. Retired EOY '21.
Rates were at historical lows as we all know which means the Lump was at a historical high, so I took the Lump.
For me, there was no partial lump, it was Lump or the annuity option. That had options for survival benefits for the spouse, or one could opt out.
Lump was an easy decision. It was at an all time high and a quick estimate via a quoting tool, I could buy an annuity from just about any company for the same monthly payment.
I'd suggest, get to know the markets annuity options and compare what you can buy with your Lump.
Know your options and what they mean to you. For me, a Lump, even if it meant a little less money in the future, it meant to me, if I drop dead tomorrow, my family gets all my money.
management. I'm on the fence. The pension pays out more than I could safely withdraw from the lump sum but I mistrust AT&T. I'm close enough to 6 that I could work a little longer and avoid the unsubsidized medical costs. A layoff would be enough to push me to lump by end of year.
Lump sum goes down for a reason: interest rates.
I'd take the lump, especially if I could put some of it in stable bonds that pay at or above inflation (we're not there yet).
Unfortunately the interest rates offered consumers and individual savers are always deeply discounted to keep the bankers in top hats and monocles.
I also consider the whittling away of benefits for AT&T retirees and the wholesale bankruptcies of GM and other pension providers and think I'd be better off taking the money and running.
Always take the LUMP and reinvest so it's part of your legacy investment.
I’m union legacy T 42 years in Unless something radical happens by October / November (highly unlikely) I’ll be taking the lump sum this year. Don’t believe we have an option for partial lump sum . At my age waiting around for the rates to recover could very well be a fool’s game
Management - taking a lump sum in both of my pensions which are cash balance. I don't trust T to manage it and can do it myself. I hope to retired soon
Mgmt- until I know the rate in the year I’m going to retire I cannot say for sure. I’m eligible in 2 more years, so we will see what it looks like then.