Do you have retiree benefits from Southern Company?
3 things you should consider:
- Which pension option should you take?
If you worked for Southern Company for an extended period of time, you likely have a pension. In short, a pension is an income amount that will be paid to you at your retirement. When you retire, you have several options to choose from regarding your pension benefit. One thing to consider is if you want Survivor Benefits for your loved ones after you pass away. Timing your payments is also a critical decision to make. I work with Southern Company employees navigating these complexities by showing them the impact that decisions such as: Having a Survivor Benefit vs not having a Survivor Benefit has on them and their loved ones. I have found that running this type of analysis is a great way for Southern Company employees/retirees to determine which pension option to elect.
- How does your pension impact your Social Security timing?
Your pension benefit will not impact your Social Security benefit amount. However, it may impact when you take your Social Security. When working with retirees, we generally start by providing analysis of their Social Security – comparing the cumulative amount based on different starting ages and providing breakeven ages. For Southern Company employees/retirees, we then use that analysis to determine when it is most advantageous to begin taking your Social Security benefits.
- How much money should you have in Southern Company stock?
It is common for employees of publicly traded companies to accumulate shares of their employer for many reasons, such as equity-based compensation plans, personal preference/allegiance, etc. I remind my clients that concentration cuts both ways – sometimes, it can be a real benefit, but it can also be a hindrance. When working with Southern Company employees/retirees, we run an analysis that shows the impact of your specific amount of Southern Company stock on you and your ability to hit your financial goals.
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The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Greg Reabold and not necessarily those of Raymond James. Investing involves risk and you may incur a profit or loss regardless of strategy selected.
