When I'm out doing LAGERS Pre-Retirement Seminars and we get to the payout options section, I will inevitably always get the question "Can you help me figure out which payout option I should choose?" from a member of the audience.
My answer is always the same - yes, but no, not really. Since LAGERS provides flexibility in the variety of payout options that can be chosen, the only person who's really going to be able to decide which combination is right for you, is YOU.
- Do you want to pay off your house or other debt before you retire?
- Do you have a plan that you will need money up front for, the trip of a lifetime, or buying a vehicle, boat or piece of property?
- Do you have a spouse you want to provide for after you pass away?
- Are you single but still want to provide for someone from your pension after you pass away?
These are just some of the questions you might ask yourself when you try to choose your payout option. The infographic below outlines your options and what you have to choose from in terms of paying out a beneficiary from your benefit. Keep in mind that all benefits paid to the member are lifetime benefits, and your payout options just decide how you receive your payment and how much, if any, you set aside for a beneficiary.
Just remember, everyone's situation is different, so your needs in retirement and how you receive your benefit from LAGERS will be unique to your life. While we can't necessarily tell you which one you should choose, you can contact us to help you understand your options so you can make the best decision for you and your family.