Should You Retire Early to Get a Larger Lump Sum on Your Pension?

The math on when and how to retire is shifting for millions of workers with pension plans. Blame the steep rise in interest rates.

When workers retire with a pension, many are given a choice between receiving a monthly income for life or taking a lump-sum payment. Many pick the lump sum, and those payout amounts have generally increased in recent years. But now, as interest rates rise, lump-sum payouts are dropping by as much as 30%, financial advisers say, sparking a wave of early retirements.

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