Pension Option

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Dictionary Says

Definition of 'Pension Option'

A set of options that a pensioner has in regard to the handling of his or her pension. Pensioners must make choices that determine how the funds will be distributed, and they must weigh the advantages and disadvantages of each option to determine which will work best for their financial and family situation.
Investopedia Says

Investopedia explains 'Pension Option'

Some of the pension options from which pensioners must choose will determine if a spouse will continue to have benefits in the event of the pensioner's death, or if benefits will be paid only during the life of the pensioner.

Options that must be examined include lump-sum distributions, single life and joint and survivor pension payout options. For instance, if a pensioner opts for a single life annuity, he or she can expect larger monthly benefit payments, but a spouse will not be eligible to continue receiving benefits if widowed.

Search results for

'Pension Option'

  • New Option For Beneficiaries: Reversionary Annuities

    http://www.investopedia.com/articles/retirement/08/survivor-benefit.asp
    ... Therefore, he selected a life-only option from his employer's pension plan
    so he could receive the highest payout - $3,000 a month. ...

  • What is pension maximization?

    http://www.investopedia.com/ask/answers/09/what-is-pension-maximization.asp
    ... Under the joint-life payout option, the pension check will be smaller - but
    it continues to pay even after your death, to your spouse. ...

  • Can I leave my pension to my spouse when I pass away?

    http://www.investopedia.com/ask/answers/08/leave-pension-to-spouse.asp
    In most cases, an individual with a pension plan should have the option to leave
    at least a portion of his or her pension to a surviving spouse and/or. ...

  • Pension Protection Act Of 2006 Becomes Law

    http://www.investopedia.com/articles/retirement/06/ppa2006.asp
    ... Prior to EGTRRA, employers would pair money purchase pension plans with profit sharing
    plans or SEP IRAs in order to have the option of making deductible ...

  • Pension Plans: Pain Or Pleasure?

    http://www.investopedia.com/articles/retirement/07/how_pensions_work.asp
    Pension Plans: Pain Or Pleasure? ... Pension offerings have become scarce in
    the private sector, and it's important to understand why. ...

  • The Pension Bill: A Wolf In Sheep's Clothing

    http://www.investopedia.com/articles/retirement/06/pensionbill2006.asp
    ... Having the option to contribute more is of little value if you can't afford to ... Most
    workers would prefer a guaranteed pension check for a job that lasts for 30 ...

  • How do I "vest" something?

    http://www.investopedia.com/ask/answers/09/how-to-vest.asp
    ... When working for a company that offers a pension plan, the employee "vests ... Many
    employers provide employees the opportunity or "option" to purchase shares of ...

  • Pension Law Could Reduce Your Payout

    http://www.investopedia.com/articles/retirement/07/payout.asp
    ... (It is not in your best interest if the pension plan in which you participate does
    not offer the option to take your benefits as a lump-sum payment. ...

  • Series 7 Study Guide - Retirement Accounts - Individual Retirement ...

    http://www.investopedia.com/exam-guide/series-7/retirement/traditional-ira-sep.asp
    ... 8.10 Option Styles; 8.11 Spread Option Strategies; 8.12 Straddle Option Strategies; ...
    Simplified Employee Pension (SEP) An employer-sponsored flavor of IRA is the ...

  • Lifetime Income Annuities: The Instant Pension Plan

    http://www.investopedia.com/articles/retirement/09/income-annuities-pension-plan.asp
    Lifetime Income Annuities: The Instant Pension Plan. ... similar variations.
    Inflation protection is another option. Structured payments ...

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