July rates suggest a 7-8% adverse impact on lump sum pension values if employee stays beyond November 30th. This after a 19-20% reduction this year. What are you hearing from your peers or leadership? Does this create a run for the exits, or does it lock in the folks for longer as cumulative 30% two year decline?
7 replies (most recent on top)
You cannot defer. It's not when you leave. It's when you take the pension.
People know interest rates aren't going down. I am predicting a lot of retirements this year for those in the pension plan. People would be crazy to take this second hit.
Anyone who didn’t leave last year is planning to take monthly payout anyway so rates are irrelevant
You could leave and defer for a year or 2 no? But if I leave, I may want to control what little is left.
At this point for many the 30% would force many to stay and hope to recoup. 30% is a big game changer.
You either stay hoping the interest rate turns around or leave trying to cut your losses.
30 percent impact is massive. Would have been huge for me if I stayed. Folks will need to continue to press on to regain some of the lost 30 percent.