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| - Can you live comfortably now if you defer your benefits? Can your personal savings or other sources of income meet your financial needs in the meantime?
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Take a lump-sum payment (if available) | - If you take your payment in cash, how will the applicable taxes affect your retirement security?
- What are the benefits of rolling over the lump sum directly into an IRA? Will tax-deferred growth improve your retirement security? Will you be in a lower tax bracket in a few years and be able to pay lower taxes on the money you withdraw from an IRA?
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Take a single life annuity | - You’ll receive a monthly payment for the rest of your life, and payments will end when you die.
- Are you married? Do you have dependents? Will choosing this option hurt their financial security after your death? Do you have life insurance or other income or savings that will support them?
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Take a joint and survivor annuity | - You’ll receive a monthly payment for the rest of your life. When you die, your beneficiary will receive a percentage of your monthly benefit for his or her lifetime.
- Your monthly benefit will be lower than the amount you would receive with a Single Life Annuity. The benefit amount depends on your age, the beneficiary’s age, and the percentage of the benefit that will be paid to the beneficiary upon your death.
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