Getting Ready to Sell Pension Payments
Someone who is lucky enough to draw a pension from a long-term job has an additional option for getting up-front cash to meet immediate financial goals or handle big financial emergencies. Those who want to sell pension payments are often facing short-term debts or other financial problems that require a large amount of money at a certain time. One good example is a pension holder who is behind on mortgage payments. Without a quick influx of cash, someone who is in default on mortgage payments could lose their home. Pension holders also sell pension payments for many other reasons related to immediate debts, such as high-interest debts or huge medical bills, which may threaten to sink a household budget.
What It Means to Sell Pension Payments
Pensions are payments for workers that are meant to provide for retirement. These payments are typically calculated based on the length of time someone has been in a job, and their salary. Those who are in the military and government employees typically earn pensions. Teachers and police officers often receive these payments as well. Some private companies provide pensions to long-term workers to supplement other sources of income in retirement, such as Social Security and a worker’s own savings.
Selling pension payments involves committing future life contingent pension payments in exchange for an upfront lump-sum cash payment. Pension sellers typically ask buyers about the net amount they will receive in exchange for their sale of future payment rights, which are directed to the buyer.
Critical Information for Selling Pension Payments
To sell pension payments, pension holders will need to give the buyer certain information, including contact information and the name of the entity that provides pension payments. Buyers also need to know how much the pension holder is getting each month from a pension; in some cases, there is a minimum monthly amount needed to set up a plan to sell pension payments to a buyer. Someone who wants to sell pension payments might also need to have a life insurance policy as a financial safeguard. It’s important to note that those getting Social Security payments from the government cannot sell these payments.
Sell Pension Payments with CBC
At CBC, we have a history of helping individual workers to sell pension payments and get immediate money for any financial challenges that they face. Our dedication to excellent customer service means that we will listen to you, and work according to your needs, to allow you to get immediate money out of a pension. Ask us about how we can set up a plan to sell pension payments that will help you achieve your financial goals.