No. of Recommendations: 2
OK. So if your top 3 salary-years in 18 months is, say, $100,000 and you leave the company at that time, then your accrued benefit will be about an $8,000 annual annuity that will begin at the plan's retirement age, usually 65. The approximate cash value in 18 months of the life annuity paid over a 22 year life expectancy assuming a plan valuation discount rate of 4.1% and an expected average annual rate of return of 7%, will be about $53,000.

So is it worth staying put for 18 months vs. foregoing this pension in exchange for a benefit from another employer? Should you take the lump sum vs. the life annuity in 12 years?

Of course, there are other non-financial issues you'll have to include in your decision making, but this is generally the pathway to help you get to your best answer.

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