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GM Defined Benefit Pension

Guidance on Collecting a Pension

At HFG, our purpose is to guide and educate our clients on proper money management, goals-based investing and securing their future. As tax laws, investment restrictions and employer benefits change, our team of HFG Advisors and staff are here to help you understand the value and impact left in their wake.

One of the most impactful of changes that have occurred over the years has been to the benefits suite your employer offers. As global competition has compressed profit margins, there has been a cost savings and cost sharing initiative by private sector employers when it comes to employee benefits. For those of you fortunate to still have a Defined Benefit Pension with your name on it, you may be impacted the most by this initiative.

In the past, the only decision you had to make when it came to your Defined Benefit Pension benefit was, which lifetime annuity payment to choose. Today, most employers are now offering an additional option, a lump sum payment!

As enticing as the lump sum pension benefit seems, it may not be the best choice for everyone. There are many quantitative and qualitative risk factors that should be discussed and considered when it comes to making your pension collection decision. At HFG, we will objectively analyze your pension benefit options, discuss the pros and cons of each and compare the results of your retirement forecast side-by-side to show you how each option impacts the integrity of your Retirement Income Plan.

At HFG, our approach to financial planning has been to guide and educate our clients to make decisions that are in their best interest.