US. The Growing Pension Risks Facing Boomers and Gen Xers
Boomers and Gen Xers may be in for some potentially unpleasant surprises in retirement.
The pension they were expecting to receive every month from their former employer might not be coming from that employer. Instead, it may be turned over to an insurance company hired to manage the pension plan and turn it into monthly annuity payments. If that happens, the pension benefits will no longer be guaranteed by the federal Pension Benefit Guaranty Corp. (PBGC), but by a state insurance guaranty agency.
Alternatively, your employer may try to get your pension off its books by letting you take it as a lump sum rather than in monthly installments. If you do this, you’ll then have to figure out how and where to invest the money in retirement.
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