Retirement Planning: Lump Sum or Yearly Income


Everyone seems to have their own retirement strategy. While some people seem to be misinformed, personalized retirement plans are generally a good thing. Everyone’s life is different so it only makes sense that their retirement plan follows suit.

Yet at the same time, there are typically two distinct philosophies for retirement planning. These two philosophies aren’t anything new. While almost all employers have replaced pension plans with 401k or 403b investment accounts, even when pensions were popular, there was still a difference in how everyone approached retirement. The two predominant choices are and always have been: lump sum or yearly income.

While it is too simplistic to suggest that one approach is always “better” than the other, there are clear advantages and disadvantages to each retirement strategy. Each has its own risks. If you are trying to work out your retirement plan, you may be interested in the comparison . . . → Read More: Retirement Planning: Lump Sum or Yearly Income