If you are thinking about retiring and drawing a LUMP SUM in the VERY near future, then you need to read the following information about the effect of interest rates on the amount that you are entitled to.
2019 Interest Rates & Lump Sums
For 2019, the interest rate is increasing, which result in lower lump sum payments than you could have seen in 2018. We have seen the interest rate increase over the years but this year (2019) we also had a change to the mortality table which has had a dramatic effect on Lump Sums. The interest rate only applies to LUMP SUMS; it does not have any affect on the monthly annuity options. For some, you will see a 5% to 6% lower lump sum in 2019.
What you need to do if you were considering retirement in early 2019 and considering a LUMP SUM option:
- Run a pension estimate on the portal for retirement date of 11/1/2018
- Run a pension estimate on the portal for retirement date of 1/1/2018
To keep this as simple as possible, I would stress that if you are age 60 or older, considering retirement in the beginning of 2019, and if you are considering the lump sum option, you need to get your estimates ASAP and look at your numbers and how the new interest rate may affect you. Although we realize this is very short notice, if you want to discuss your options or start the retirement process, please call the Goodyear Associate Center at 1-844-449-4772 or the Union Hall to make an appointment with Linwood Kendrick AS SOON AS POSSIBLE.
Linwood can be reached at the Union Hall (910) 822-1751