4 Ways to Take Your Pension Money: Which Should You Choose?
If you're lucky enough to have a pension from an employer, it makes sense to get the maximum possible benefit out of it. And one way to do so is by selecting the best payout option for yourself and your family.
Taking a lump-sum payout means you'll get a single, large sum of money as soon as you retire -- and that's the end of your pension. The lump-sum option gives you maximum control of your money, as you can then decide what to do with it instead of leaving it up to the pension people to manage it for you. Unfortunately, retirees who choose this option tend to overspend their lump sum, leaving them without sufficient funds later in retirement. So if you choose the lump-sum option, roll it into an IRA or another retirement account, rather than tucking it into a standard brokerage or bank account. That will help remind you to keep your sticky little fingers off the money that's supposed to last your entire lifetime.
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Source: Fool.com
