Interest rate on lump sum is going way up…which for those of you that don’t understand, is a bad thing. You are going to lose 20-25% of your pension if you delay. To be clear, That is not an Allstate decision. Another way of saying it….you will be working for free or a deeply discounted “salary”.
Go do your homework.
If you don't retire for 30 years, you aren't even in the FAP play anyway.
Like the other person that posted, close to 55 but not close enough and tenured. The wondering and waiting is difficult. The higher salaried workers will be cut in one way or the other.stay out of the way, keep working. Wait it out. Either way it goes you'll be out of work soon. You're better off to have some cash to go with it.
54 cant retire 20 years in probably going to be laid off so no chance to wait for recovery of the interest rates
Those who are retiring due to the lump sum issue need to do so by 11/30/22, before their rate changes. That’s why so many retirements are being announced this last week.
This has been talked about a few times here and lots of info available throughout the internet on this interest rate impact on pensions in general.
To be optimized under the Allstate lump sum pension, you need to be opted in under the old method, have 20 or more years with the company, and be 55 or older. If you are ALL three of those things, run the numbers on the pension calculator comparing lump sum payments with a date of 11/30/22 vs 12/31/22. The difference is how much you’ll lose due to the interest rate change. Then submit your retirement asap.
Those who are younger have time to see interest rates go back down. Those who haven’t been with the company at least 15 years are on the newer pension plan with a different calculation and much less impact.
My retirement isn't for 30 years so I can't retire. Could the interest rates possibly go down in 30 years?
Yes, and layoffs continue...
Correct.