Retirement creeps up before you know it, so you should start preparing today. Pension income can provide enough of a cushion for you to live comfortably after the age of 65, but not all retirement funds are made the same. The median pension benefit for 2014 was around $9,227 per year for private plans while public pensions were around $14,158. Overall, this means that $9,227-$14,158 accounts for pension payments that you’ll see throughout your retirement that’s taxed as income (similar to if you were working).
You can take your pension payments as a lump sum offer, but it’s important to think about whether it’s the best option. A lump sum pension payment means you need to make the money last for decades. Some people invest the money into an IRA. While this means your money could grow larger, you could also lose it if the market takes a dive.
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