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Can I get a loan or get a lump sum buy out on my monthly payments I receive now on my retirement.

I have been receiving payments now for 8 years.

Dec 29, 2014 by Timothy from Caldwell, ID in  |  Flag
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It is possible to sell your rights to receive a pension in exchange for a lump sum but it is generally not advisable.

Here is a link to an SEC press release on the subject that may be helpful to you:


Comment   |  Flag   |  Dec 29, 2014 from Fort Washington, PA

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Larry R Frank Sr Level 20

You may get a loan - but it is essentially a personal loan based on your pension payment. Think of this the same way you would have got such a loan during your working years. You can ask your bank or credit union about this.

Lump sum buy out? The big question here is ... what are you going to do for income when you don't have the pension payments anymore? So getting money may bail you out of one problem but create an even bigger problem for the rest of your life.

Your question leaves a lot of details out ... and important details that would affect what decision is right for you. What underlying behavior and actions on your part has led you to consider this? How do you correct things so you won't get into a worse situation? Is this a health issue where negotiating a medical loan may be better (separates loans to credit scoring agencies don't lump loans into the same category of general credit)?

I suggest you talk fact to face with an adviser to get answers specific to your situation. You may find a local fiduciary adviser that will work in your interest (not selling products) here http://www.napfa.org/ using the "Find and Adviser" function. Trying to get the answer online will give you insights, but not a good specific answer without a good discussion as to why you're considering such an action to begin with?

Comment   |  Flag   |  Dec 29, 2014 from Roseville, CA

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Unless this is your last resort and have no other ways to obtain funds, this is a very bad idea.

Comment   |  Flag   |  Dec 29, 2014 from Canton, GA

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Any lump sum offer you receive from a buyout firm will likely have terms that are very favorable to THEM, and not to you. They are in the business of making a profit, and they will be profiting directly from your income source.

As was mentioned above, unless this is a very unique situation, it is really not advisable to sell your pension payment.

Comment   |  Flag   |  Jan 05, 2015 from Mystic, CT

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Glenn J Downing Level 5

Couldn't agree more with my colleagues. Think of it this way: you're looking into selling a stream of payments that you own. Is anyone going to pay you full value? Of course not - you're in a tight spot, and you'll have to take a significant haircut on the amount received. Firms that deal in purchasing structured settlements - I know that is not your case, but similar - advertise extensively on television. Who knew it was such a big business?
Let me give you a quick example. Say your life expectancy is 20 more years, and you receive $1000/month. If you use a discount rate of 6%, the present value of this stream of income is $139,581. You may be offered somewhere between 1/2 and 3/4 of that amount.

Comment   |  Flag   |  Feb 04, 2015 from Miami, FL

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Steve Casull Level 13

Timothy, Call me an antagonist, but I can't believe not one of the previous comments asked, "What do you need the money so desperately for?". What kind of "retirement plan" is the money in currently? Do you own a home? Tim, before you take ANY advice, you need to find a Financial Advisor, NOT a salesman. There are a lot of questions that haven't been asked or answered. There are many avenues in Finance. There are many "tools in the shed" that could possibly help you.

I'm good at what I do, and I'm not just talking about investment analysis. Depending on the need, I am confident that another alternative could present itself rather than discount out of your retirement. I say "discount" becasue for another entity to "buy out" your retirement, they would have to accept the annual payment stream for the rest of the period.

Comment   |  Flag   |  May 18, 2015 from South Jordan, UT

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