Financial Intel Monthly

Could Lump-Sums for AT&T employees be on the decline? The November interest rates,  which AT&T uses to determine lump sum values for everyone who retires in 2022 were released in December. We now have new monthly segment rates which show that interest rates are continuing to rise. Rates have been steadily increasing over the past year and with the recent announcement of next year's interest rates we are very likely to see a reduction in lump-sum values for AT&T employees who retire in 2023. AT&T interest rates decreased in 2020 causing 2021 lump sums to hit record highs. Based on the current trend of interest rates and monetary policy announcements it is likely that rates seen in 2020 will be the lowest for the foreseeable future - meaning that the Lump Sum Values for AT&T employees who retired in 2021 will likely be the highest for the foreseeable future. When interest rates move up or down, your pension lump sum amount will move in an inverse relationship. 

Could Lump-Sums for AT&T employees be on the decline? The November interest rates,  which AT&T uses to determine lump sum values for everyone who retires in 2022 were released in December. We now have new monthly segment rates which show that interest rates are continuing to rise. Rates have been steadily increasing over the past year and with the recent announcement of next year's interest rates we are very likely to see a reduction in lump-sum values for AT&T employees who retire in 2023. AT&T interest rates decreased in 2020 causing 2021 lump sums to hit record highs. Based on the current trend of interest rates and monetary policy announcements it is likely that rates seen in 2020 will be the lowest for the foreseeable future - meaning that the Lump Sum Values for AT&T employees who retired in 2021 will likely be the highest for the foreseeable future. When interest rates move up or down, your pension lump sum amount will move in an inverse relationship. 

The November interest rates, which AT&T uses to determine lump sum values for everyone who retires in 2022 have been released. Rates have been steadily increasing over the past year and with the recent announcement of next year's interest rates we are very likely to see a reduction in lump-sum values for AT&T employees who retire in 2022. AT&T interest rates decreased in 2020 causing 2021 lump sums to hit record highs. Based on the current trend of interest rates and monetary policy announcements it is likely that rates seen in 2020 will be the lowest for the foreseeable future - meaning that the Lump Sum Values for AT&T employees who retired in 2021 will likely be the highest for the foreseeable future. When interest rates move up or down, your pension lump sum amount will move in an inverse relationship. 

Additional Articles You May Enjoy:

AT&T's employee perks are made up of a lot of moving pieces. With over 20 years of working with AT&T employees and retirees in Texas and other parts of the United States, we understand how difficult it is to keep track of all your options. A couple good options are AT&T’s employee stock purchase and cash deferral plans.

These plans were made available to AT&T employees who are level three or higher, and the deadline to contribute to those plans was November 30.

Now that you've made after-tax contributions to your AT&T 401(k) retirement plan, it could be time to go a step further and create a potential tax-free income stream for your retirement.

By changing your after-tax balance to Roth this year, you might effectively avoid paying taxes on future profits.

What is a Roth in-plan conversion?

You may use this tool to convert your 401(k) plan's after-tax balance to Roth funds. Any investment earnings taxes linked with your after-tax contributions must be paid when you convert to Roth savings. If you fulfill all of the conditions, your Roth investments can grow tax-free and be taken tax-free in retirement.

Over the last few weeks, our AT&T-focused advisors here at The Retirement Group have been getting asked a particular question during our webinars. We feel it is important that everyone who is currently working, retired, or on the verge of retiring know the answer to this:

If you work for AT&T and are nearing your Retirement Years this information will apply to you specifically.

AT&T History

AT&T has a complicated history of breaking up and merging back together. In 1984 the giant corporation was split into regional telecommunications companies known as the "Baby Bells." Since the break-up, these companies have merged once again to form the present-day AT&T.  Due to AT&T's mergers, understanding the complexities of the pension plans can be a challenge. Click the button below to get in contact with an AT&T specific advisor here at The Retirement Group.