How to Choose Between Lump Sum and Annuity for Your Pension

[@FIRE_DrNinjaTurtle]

Love your podcast.

[@earlyretirementari]

Thanks Darrell!

[@Bondbeer]

Good video. I recently took the lump sum even though my payout ratio on the annuity of 6.4% would have been better than your example. I bought a 30 year T bond paying 4.75%. It provides $5k less per year than the annuity but even if you invested that over the 30 years at the same 4.75% you would end up with only $257k vs the $300k I would have in principal when my bond matured or $43k more at age 95. If I die beforehand the benefit for the lump sum is even greater. The break even is over age 100.