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Message: <blockquote data-quote="Bagels" data-source="post: 2392672" data-attributes="member: 43436">Your monthly pension amount is fixed -- there's no COLA adjustment.For my offer, UPS used a discount rate north of 7%.  That means I'd have to earn 7% annually in order to match the money that's owed to me.  That's not going to happen.  Additionally, statistically, you and/or your spouse have a 50% chance of outliving current mortality rates.Remember, any monies used before you're 59.5 are subject to a 10% penalty.  That's pretty costly financing.  With interests rates so low, you'd be far better off taking a home equity loan (which, of course, has tax advantages) or opening a small line of credit at a credit union.Remember... if you accept this offer, you're giving up your pension, so once the money is gone, it's gone.</blockquote>