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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: Lane3 who wrote (98595)2/4/2005 7:46:39 AM
From: John Carragher  Read Replies (2) | Respond to of 793689
 
another alternative with defined benefit plan that does not include adjustments for inflation is to take a lump sum if available.

often you can find a better annuity offered by companies with the lump sum than that offered in the defined benefit plan.
the other alternative is to invest the lump sum.

defined benefits are nice to have but if no inflation adjustment,(i assumed most do not?) based on today's life expectancies i wonder how helpful these pensions will be in twenty years.



To: Lane3 who wrote (98595)2/4/2005 11:31:37 AM
From: Snowshoe  Read Replies (3) | Respond to of 793689
 
Yes, the Bush proposal offloads more of the responsibility for dealing with inflation onto the individual. This will focus more national attention on the insidious damage that inflation does to retirees.

The shift to personal accounts should reduce the periodic Congressional politics regarding SS benefit rate increases. But the rate of taxation on retirement income could become a monster issue!


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