Many retiring government employees roll over their partial lump sum distributions and/or deferred compensation plans into an IRA using indexed annuities.  This allows them some access and control of their money and is available to their beneficiaries regardless of when they die. See the Annuity Section for more information on the indexed annuity.

Married couples where the government employee is insurable may be able to increase their monthly cash flow & protect their spouse’s security by purchasing life insurance. Generally, the cost of the life insurance is much less than the difference between a life only pension option and a life with joint survivor option. Thus, one’s monthly cash flow could be increased by using this pension maximizer concept.  Life insurance should be purchased 3-4 months prior to turning in your retirement selections because you need to know that the life insurance is approved.  See the example in the Retirement Section of how I improved one government worker’s monthly cash flow by $900 per month.