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No. of Recommendations: 3
"For example $25K *4% = $1K pension."

I had to choose between a lump sum and a pension in 2018, chose the pension.
Since 2018, stock market has had issues in December 2018, and of course 2020.
Fully expect more big time volatility in the future, as well.
Was really nice having a pension paycheck coming in, and because of it
was able to get aggressive in the stock market during both of those events noted above.

I did that very simple calculation you mentioned above, and that sold me on the pension.
( Lump Sum Amount * 4% ) = Annual Payout, and just compared that to the Annual pension.
Yes, inflation will make the pension less valuable over time, but Social Security will
pick up that slack. And yes, the lump sum could have been invested.

Basically, did not want to have most everything tied up in the stock market.
If the pension fund goes under, the PBGC will cover it. If the PBGC goes under,
then eventually Social Security will replace it. If SS goes under, we all are
going to have really big problems, and the 401k/IRA's probably won't be worth much
of anything, either.

I think I've read that you have a good sized 401k/IRA, so getting a pension can allow
you to invest more steadfastly, and more aggressively, if you want.

Either way, good options to have !
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