A client who is already collecting their Massachusetts pension wanted to make a large purchase. The concern was that it would use up a significant portion of their emergency fund. My first reaction was concern, but then I remembered they had guaranteed income in the form of a pension that covered most of their expenses.

If you have a Massachusetts pension, you’re already in a strong position. For many people, that pension covers a large portion of their retirement income needs and sometimes most of it. That’s the good news. The problem is that too many people stop there. The pension is a solid start, but it’s just the foundation I like to explain it this way:

Choosing between Massachusetts Pension Options A, B, or C is one of the most important retirement decisions Massachusetts public employees make. Most people initially treat this choice as a math problem: That’s a reasonable place to start, but it’s rarely the best way to make the decision. In reality, most people want to protect their spouse and make sure household income continues if one person dies first. That’s why choosing a Massachusetts pension option is really about household goals