Fidelity announced Thursday the launch of an online pension tool that allows corporate pension plan participants to set up their pension payments in a three-step process.
In the Collect Your Pension tool, participants can use a modeling tool to determine the best payment option for them based on their retirement date and beneficiary choices.
The next step requires participants to identify where they want the money to be deposited. Those who choose an annuity are prompted to enter tax withholding information and bank account information. Those who elect to take a lump sum can choose to take a taxable distribution, or can roll the assets into an IRA or 401(k).
Also, pre-retirees can sign and submit their documents electronically.
Wendy Foster, senior vice president at Fidelity Investments, noted in a statement that for the nearly 3 million boomers who will turn 65 this year, this may be the first time they've thought seriously about their pension.