Ask Terry Questions What do do with Union Annuity and Pension checks

What do do with Union Annuity and Pension checks

By Terry Savage on April 20, 2013 | Financial Planning / Retirement

Terry, I’m going to retire next year at 64 and I will have a Union Annuity of $60,000 plus a pension of 3500.00 per month. Should I take all of the annuity and put in a tax shelter fund or draw it monthly?

SAVAGE SAYS: I’d need to know a lot more about your options with this annuity. For example, must it start paying out (annuitize) immediately upon your retirement? How much are they offering monthly Will it cover you and your spouse (and is your spouse also going to get continued pension benefits after your death)?

The way to figure out if you are getting a “fair” amount monthly is to go to www.immediateannuities.com, enter the amount and your age, and you can click and see what other insurers are offering monthly, based on this sum.

If your union will let you “roll” the annuity into another, better plan, that might be an option. However your union annuity might have other special features, which make it a better deal, even if the monthly amount is a bit lower. You should definitely talk to the retirement specialist at your union financial office to get the full picture.

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