Lump sum payout or monthly pension income?
There are primarily two ways to receive income from a pension plan: either withdraw it as a lump sum or receive it as periodic payments until the death of the retiree (or, in some cases, until the death of both the retiree and their spouse).
Single-life or joint-and-survivor pension payout?
A single-life pension means the employer pays a pension to the employee until their death. This payment option offers higher monthly payments, but the retiree's spouse receives no benefits after the retiree's death. In contrast, a joint-and-survivor pension payout provides a lower monthly amount, but the spouse continues to receive benefits for life after the retiree passes away.
Should you work longer for a better pension?
Some people may choose to delay retirement by a few years to receive a higher pension later. Use this calculation to determine which option is better.