- Created on Tuesday, 01 July 2014 15:00
- Written by IVN
Washington, DC - If you’re trying to make ends meet, here’s a pitch that might catch your interest:
“Convert tomorrow’s pension checks into hard cash today.”
Sound tempting? Think again. The Federal Trade Commission, the nation’s consumer protection agency, advises consumers that pension advances, also known as pension sales, loans, or buyouts, come at a very steep price.
Most pension advances require you to sign over all or some of your monthly pension checks for five to 10 years. The lump sum payment you get in return is less than the pension payments you sign over, so you’re signing over money you need to live on. And pension advances often require retirees to buy a life insurance policy - with the pension advance company as the beneficiary - to insure that the repayments continue.
For more information, read the FTC’s Pension Advances: Not So Fast.