The Case for a Lump Sum Pension Distribution

The stability of monthly payments may sound reassuring, but what are you giving up if you go that route?

(Image credit: KaraGrubis)

Large corporations, like Pfizer and Bristol-Myers, have long extolled the benefits of their defined benefit pension plans. However, in 2017, Pfizer finally pulled the plug on its defined benefit plan in favor of a more company-friendly 401(k) employer match. Bristol-Myers announced it would follow suit in 2019. These two corporations are some of the latest examples of a trend that has become more prevalent in the private sector in recent years: the extinction of defined benefit plans.

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Patrick B. Healey, CFP® MBA
Founder & President, Caliber Financial Partners

Patrick Healey is the founder and president of Caliber Financial Partners and has over 20 years of experience in the financial services industry.