Aflac Draft - Momentum Wealth

Attention Aflac Employees & Retirees!

 

The Aflac Pension Plan has been Terminated.

 

What does this mean for you?

The Aflac Pension Plan has been terminated, freezing all benefit formulas for current and former employees, and those retirees who have not yet started receiving their monthly pension benefit.

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Upcoming Deadlines

August 15th is the deadline to make your decision between a monthly pension payment and lump sum, AND submit your paperwork to Milliman.

 

 

Timeline illustrating key dates and events related to the termination of the Aflac

What are my options? 


A pension is a retirement plan that provides you with a steady income stream after you retire. Typically funded by employers, pensions are designed to ensure financial security throughout your retirement. Benefits are calculated based on factors like salary history and years of service. Now, you have the option to take a lump sum or receive monthly payments, which you can choose based on your financial needs and goals. Understanding your pension options is crucial for planning a secure and comfortable retirement.

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Monthly Payments versus a Lump Sum

This image visually compares the financial implications of choosing between monthly pension payments and a lump sum payout for Aflac employees. It includes charts and graphs illustrating potential benefits, investment risks, and long-term value based on different scenarios. This comparison helps employees make informed decisions about their retirement options, considering factors like life expectancy, inflation, and personal financial goals. Visual comparison of the financial outcomes between monthly pension payments and lump sum options for Aflac employees. Comparison of monthly pension payments versus lump sum options for Aflac employees. MONTHLY PAYMENTS: Married Participants: 50% joint and contingent annuity; monthly payments for your lifetime, reduced compared to a Single Life Annuity; Upon your death, your spouse receives 50% of your monthly payments for their lifetime; the reduction is based on the ages of you and your spouse at the start of payments. Unmarried participants: single life annuity; fixed monthly payments for your lifetime; no payments to beneficiaries after your death. Certain and Life Annuity: provides monthly payments for your lifetime; If you die before receiving a set number of payments, your beneficiary will receive the remaining payments as a lump sum; you can choose guaranteed periods of 5, 10 or 15 years. LUMP SUM: Lump sum payment: available during a one-time election window in July and August 2024, with payment in November 2024; calculated based on interest rates and mortality tables as of June 2024.

How to Decide Between the Lump Sum and Monthly Payments

 

To determine whether taking monthly payments or a lump sum is better, you should consider several factors:

Investment Risk

If you take the lump sum, it needs to be invested wisely to achieve the expected return. Consider market risks and your investment strategy.

Life Expectancy

If you live longer than expected, monthly payments may provide more financial security.

Inflation

Monthly payments might not keep up with inflation unless they are specifically inflation-adjusted.

Personal Financial Situation

Immediate financial needs, debt, and other financial goals can influence your decision.

How do I weigh these factors when making my decision?

Consult a Financial Advisor for Your Aflac Pension

 

Navigating your Aflac pension options can be complex. Consulting with a financial advisor can help you analyze your specific situation and make well-informed decisions tailored to your needs.

Knowing Which Way to Go with Your Aflac Pension

Deciding between monthly pension payments and a lump sum payout can be complex. Always consider consulting with a financial advisor to analyze your specific Aflac pension options and make the best-informed decision for your financial future.

Trustworthy Advisors to Guide You to Your Personal Goals

Momentum’s approach combines client-focused financial planning with the latest technology to simplify decisions and put you in control of your future. We work transparently with our clients, ensuring they understand the “why” behind every decision in their plans.

 

Would you like help with your Aflac pension?

BOOK A FREE 1-ON-1 AFLAC PENSION STRATEGY SESSION