Pension Lump Sum vs. Annuity: Why 5% Treasury Yields May Not Beat a 7.6% Payout
A retiree choosing between a $410,000 lump sum and a $2,600 monthly pension faces a significant income gap. While 5% Treasury yields offer stability, they generate only $1,708 monthly, leaving a $900 shortfall compared to the pension. Advisors suggest that unless the retiree has specific health or inheritance goals, the higher pension payout rate often provides better long-term security.