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.
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