Rising interest rates alter pensions for some potential retirees

Higher interest rates are good for our cash and checking accounts, but they aren’t always good for pensioners. Higher interest rates have an inverse relationship to the value of the total amount of the pension. as such interest rates The value of the lump sum for the pensioner may decrease. For this reason, I’m seeing more pensioners who want a lump sum doing so now in exchange for waiting.

I see too Premium rates improve With higher interest rates, annual income is likely to be higher than pension income (see chart below). There is a lot to consider if you are a current pensioner. Let’s review.

Pros and cons of taking a lump sum

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