Pension Lump sum question

What’s your other investments, what’s the pension amount, what’s the payout if you leave it in? What’s your plans for the limo sum if you remove it?

Loan interest rate ? I assume it's better than current Bidenomics rates?

Compare your current loan interest rate against a modest return if you invest the lump sum, you could find your answer there.
This assumes you are not financially strapped by continuing to pay the monthly notes.

3.25%

I wouldn’t pay off the mortgage at that rate. T bills will pay you over 5%

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Loan interest rate ? I assume it's better than current Bidenomics rates?

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This.

Don't make an effort to pay off low interest debt like this.

Find out what you want your retirement to look like and start there.
Do you want a condo on the beach? That's a helluva down-payment.
Deep sea fisher?
Fly fisherman or hunter? Buy land.
Traveler? Get some motorcycles or RVs. Or do big trips.

There is nothing wrong with not knowing yet.
But once you rid yourself of that low interest rate, you can't get it back for any other venture.

Appreciate any and all views fellas, so thanks to all.

Wife and I are not big travellers but a few beach trips/ Carribean/Key West getaways are our retirement wants

Hunting/fishing type of guy, so land purchase could be an option. We consider ourselves in our forever home, so no beach condos, etc on our horizon for investment purposes.

We lead a fairly nice, simple life and are both in good health. The thoughts of being indebted to the system with regards to our home trouble me, with the way things are headed in the world/U.S. Knowing our home is ours for good would relieve alot of troubling fears in my mind. But if it costs too much future financial potential then it probably isn’t the right move. Just really torn on this

I’ll add one other detail.
The company I left is a major name, but on the downslide IMHO.
Every major business bigwig retiring /leaving and being replaced with people from the land of Hindu. Stock should be strong, but sliding while other major defense-type companies stock rising strong.
Potential for pension to not be there in the future is a legit concern.
Kinda falls back to the old saying “A little of something is better than a whole lot of nothing””

Have you looked into whether the monthly payments from the pension would cover your mortgage and then last long enough to pay the mortgage balance? This should help reduce your tax hit this year, and when you are fully retired you can then revisit taking larger sums out at a lower rate.

But you may want to talk to an advisor about how this could impact your future tax implications, especially with SS & Medicare. Your answer could end up being, take out enough for the next 5 years to cover your note; then a lump sum the first year after you retire.

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Age 60. Plan on retiring at 62-65 (prob 65) Left company and will be starting new position next week. Am considering taking lump sum pension pymt from old company and paying off mortgage.

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Your LS pension payout should be significantly larger at age 65 compared to age 60.

Your payout will be reduced, likely for each month that you take it prior to normal retirement age under the plan (likely age 65).

The present value of your LS pension will also be affected by interest rates. With today's high interest rates, the present value of an amount that would otherwise be paid to you in 5 years will be relatively low compared to recent years when rates were lower. If you wait a few years for rates to (hopefully) come down a few points, the present value will be higher.

Your mortgage lender would love for you to pay off the loan if they're only getting 3.25% interest on your loan. Banks are paying at least 5.5% to borrow money from each other (Fed Funds rate). You're likely going to see your LS pension value increase by more than 3.25% per year for the next few years, so you're coming out ahead leaving the $ in the pension fund.

I’m not a financial guru either but when I left a company that offered pension, I took mine as a lump sum and rolled it directly into an IRA, so there was no immediate taxes.
At current interest, Fidelity and possibly others have 10 year CD’s at 4.55% and $170,000 should earn you over $110,000 at that rate in 10 years.
If you owe 17 years and $170,000 would pay it off I’m guessing your monthly note isn’t real large, personally I would keep the low interest loan and invest the pension.