how to counteract rising interest rates lowering your potential lump sum? mymoney1426

Is there something you can specifically do to counteract rising interest rates lowering your potential lump sum pension payout?

I'm 51 and currently have 30 years of service with a big corporation. This corporation offers a lump sum pension payout. Even though I'm not even close to retiring I do like to go onto the company pension website on a monthly basis just to model what my lump sum payout would be if I were to retire. So when I went on the website today I noticed that if I were to retire today ( 3/2/17) my lump sum payout would be $560K, but if I should retire next month that figure is only $520K, a drop of $40K. Not a small amount of money! The reason for this drop is an anticipated interest rate hike this month. So my question is - can/should a person be doing anything using their other investments to hedge against interest rate hikes giving a big haircut to their pension amounts, or does it not matter if you are not close to retirement? I guess I should mention that I also have a 401k and rollover IRA, but neither has anything comparable to the pension lump sum amount in it.

This is a UK based site that has UK residents discussing UK pensions. It does not cover US pensions so you really need to try again at a US site.

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