Do you have a defined benefit (DB) pension plan? If so, you may find yourself facing the question of whether or not to take a lump sum payment from the pension. This can be a big question that should not be taken lightly as your decision could impact your future goals and economic plans. There are certain advantages to taking the lump sum buy-out, but there are also potential disadvantages that you may face. First off, taking a lump sum buyout terminates your ability to receive future payouts from the pension fund. Thus, you will really want to look at where you are in life and understand what the future may hold for you. Your decision may be impacted by how far you are from retirement and how much you might already have saved. You will also want to keep an eye on interest rates as receiving your lump sum payout during a period of lower interest rates is more beneficial that doing so when interest rates are high as the lump sum will be larger. You may also want to look at the company offering the lump sum buyout. If they aren’t looking so hot–if you still have contacts there, they might be able to give you a good reading on that–you may want to take that lump sum. Remember, if a company goes out of business and can’t pay out your pension, you could be in deep financial trouble in the future. Of course, aside from all that I’ve mentioned so far, you will also want to check on the tax implications of receiving a lump sum payout and also will most likely need your spouse to consent as well. As with everything related to your future finances, I strongly, strongly encourage you to speak with a certified financial planner or wealth manager. They can help guide you through this process and make sure you are thinking about the right topics in relation to this.