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"Goodbye Tension,
Hello Pension"
PENSION PLANNING
By Financial Advisor, Brandon Carter,
CFP®, CIMA®, ChFC ®, CAP®,
MSFS
One of the biggest reasons the retirement landscape has
changed as fast as it has is because of the reduction in
pension plans. Employers are eager to escape the long-
term burdens that come with managing a pension for their
employees. Even though fewer and fewer people are getting
pensions, there are still many who have them and need to
know what to do with them. This chapter is for you.
Much like claiming Social Security, determining what to
do with your pension is about putting the odds in your
favor. There is no guarantee that you will make all the right
decisions, but you increase your odds of a favorable outcome
by focusing on what matters most. In this chapter, we will
cover the two main decisions you may be faced with if you
have a pension: 1) Should a spouse be included and how
much and 2) When does it make sense to take a lump sum?
To Include Your Spouse or Not - How it Works
If you are married and have a pension, you will have the option
to make sure your pension income lasts as long as either one
of you is living. Meaning if you pass away first your spouse will
continue to get the monthly pension income. Including your
spouse does come at a cost though. You typically will get a
reduced amount by including your spouse. Often, a pension
plan will give you the option to have your spouse included in
your pension but for a reduced amount.
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