The Toolbox

The Pension Election

Lump sum or monthly. Single life or survivor. Priced side by side — because this is one of the few retirement decisions that genuinely cannot be undone.

01What they offered you From your election paperwork

Your plan gives you these numbers. Enter whichever options you were offered — leave anything blank that does not apply.

Lump sum offeredIf a cash-out option exists Single life — monthlyPays you, stops at your death Joint 100% — monthlyContinues in full to your spouse

Joint 50% — monthlyHalves at your death Does it adjust for inflation?Most private pensions do not Is the plan well funded?Check the annual funding notice

02The two of you

Your age at election Spouse's ageLeave blank if single Plan to what age?For the lifetime comparison

If you took the lump sum, what would it earn? Conservatively — this money has a job Inflation

03Side by side

04What this tells you

This compares the options your plan offered, in today's dollars, using the assumptions you enter. It does not account for taxes, which apply to pension income as ordinary income and to a lump sum only when withdrawn from the IRA you roll it into. Pension elections are almost always irrevocable. Run this, then talk it through with someone before you sign.

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Advisory services offered through Sowell Management, a Registered Investment Advisor. Alex Alston and Andrew Alston are Investment Advisor Representatives of Sowell Management and provide advisory services as Alston Financial Group. Insurance products are offered through Alston Wealth LLC, a separate company not affiliated with Sowell Management. Content on this site is general education, not individualized advice.

Alston Financial Services was a separate company; its history is shared here as family background and is not a representation of this firm's tenure or experience.