Corporate bond rates and pension lump sum outlook

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Topic Author
Teamster
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Joined: Wed Mar 27, 2019 2:58 pm

Corporate bond rates and pension lump sum outlook

Post by Teamster »

I'm very close to pulling the plug on my work career and one factor in the timing is my pension lump sum. I'm trying to decide whether to stop on Dec.31st or to wait until April 1st to collect a bonus and a 401(k) company contribution that combined will be about $25000. My only concern in staying until April is the Minimum Present Value Segment Rates used to determine my lump sum amount. They are currently near the lowest levels that I've seen but seem to be trending up. I'm trying to determine what the current inflationary pressure and possible interest rate hikes will do to the corporate bond yields that determine the segment rates. The difference in lump sum value that I've calculated between the end of 2018 rates and current rates is about $125000 (about 15% of total lump amount). Any ideas on how quickly these rates could change in the current conditions?
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