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0x6a74 writes,

a coule months back, my neighbor, approaching 65, said that her ex-employer offered her a choice of a lump-sum or guaranteed monthly payments. ..asked it i knew how to decide.

i thought about it ..then asked at one of the boards.

Consensus seemed to be : "Stupid Question. because:
•you can't know how long you'll live (the monthlies will last)
• can't know what you'd be able to earn investing the lump
• can only guess what your expenses (inflation) might be."

seems Same for SS WOA.


That's true for the purchase of any single premium immediate annuity.

What your friend could do is compare the monthly benefit and lump sum payment her employer is offering with buying the same annuity from an insurer.

With regards to the WOA. I've yet to see a commercial insurer who will sell you an inflation-adjusted life annuity anywhere near as cheaply as the benefit you can buy from the SS Administration with a Withdrawal of Application.

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