After the completion of the final year of the employment, people often cannot determine whether they should go for lump sum pension or a long term pension plan. To find out the right option for yourself, you would require learning the difference between the basic features of these two options first and then you can calculate which one would suit you the most.
The monthly pension plan is a source of a guaranteed income but is not a flexible one. During emergencies if a large amount of sum is required, you can only get the same if you have taken a lump sum payment at the time of retirement. This lump sum pension plan is more flexible and can save you when you are in need of money for a major health related issue or an occasion where some extravagant costs are involved. It may also help you to pay off your pre-existing debts or to buy some highly needed luxuries for your family and yourself.
Before approaching for lump sum payment option you must discuss the matter with the HR or the concerned department of your office. It would help you to understand whether you would be getting more money if you work for some more time or the amount will be more than you expected if you request for a lump sum payment now. Also you should calculate how much income you would need on monthly basis after your retirement. Accordingly you can choose any of the two pension plans discussed above.
After getting a lump sum amount, often the pensioners prefer to sell pension at a good cost. There are companies who allow these retirees to take a large amount of money in cash by paying only a part of their entire pension amount.
Those who get Military retirement, Police Pension, Firefighter Pension, Bus Drivers Pension, Teachers Pension, Union Pension can apply for this advance payment option. There is no age limit for the pension holders to enroll into this service. Also the pensioners who have filed for bankruptcy can avail this opportunity provided the payment history or the previous track record of the consumer is clear.
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