The answer is maybe. Traditional pensions were built around the ability to provide an employee with a guaranteed source of income for the rest of their lives. Companies typically did this if they were large enough, by paying it directly from the pension and in other cases, when an employee retired they bought an annuity from a top rated insurance company to make these payments for the life of the employee and possibly the employee's spouse. A number of plans allow for a lump sum distribution at retirement in lieu of a pension payment. One must be very careful that if they take a lump sum, they have the discipline to invest it properly as it is much easier to mismanage and overestimate your talents when the lump sum is in your hands, most likely an IRA rollover. Although, I don't sell life insurance and have no license to do so, if an employee retires early enough, and they may between 60 and 65, we often look at the cost of taking a single life annuity and a joint & survivor annuity in determining whether the difference in these two payments would allow for the purchase of a sufficient amount of life insurance to guarantee the wife a secure future. Although not complicated, I would suggest that if this has any appeal to you you might want to find a fee-only financial advisor in your area and they can be found at the following website. www.napfa.org--- I hope this helps and good luck.
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