Pension Buyout FAQ

Naturally, with a decision of this magnitude, many questions arise. If you have questions, you are not alone.

We’ve received a great deal of questions over the years and want to make sure you get every answer you’re looking for before making your decision.

After your questions are answered, take 2 minutes to request a Free Estimate and find out how many zeros you can add to your bank account within the month.

Here are a few of the more Frequently Asked Questions:

  1. What is the minimum stream of pension I can sell?
  2. Are you sure I can sell my pension?
  3. What types of pension do you buy?
  4. How long will it take to receive a pension buyout estimate?
  5. How long will it take to receive my lump sum payment?
  6. Will I need to pay for a life insurance policy to sell my pension?
  7. Do you run a credit check?
  8. Do I need perfect credit to sell my pension?
  9. How much will this end up costing me?
  10. Can I pay off the lump sum payment early?
  11. What happens to the COLA annual increase?
  12. How will this transaction look tax-wise?
  13. Will this affect my credit report?



  1. What is the minimum stream of pension I can sell?

    The minimum stream of net payments you can sell is $315 per month or $3,780 per year.



  2. Are you sure I can sell my pension?

    As long as you fit into this small list of requirements, you should be able to sell your pension:

    • You must be currently receiving your pension payments
    • The amount of your pension you’re willing to sell must meet or exceed the minimum requirements: $315 monthly or $3,780 yearly
    • The payment you want to sell is not VA compensation
    • The payment you want to sell is not social security


  3. What types of pension do you buy?

    We can buy military pensions, as well as corporate and civil service pensions. We cannot, however, buy social security or VA compensation.



  4. How long will it take to receive a pension buyout estimate?

    It normally takes a maximum of 2 to 3 business days to receive your estimate. Sometimes you’ll receive your estimate within the same day.



  5. How long will it take to receive my lump sum payment?

    After you’ve submitted your application, it usually takes 2 to 3 weeks to receive your lump sum pension payment.



  6. Will I need to pay for a life insurance policy to sell my pension?

    Except for rare occasions, you will not need to pay for a life insurance policy to sell your pension.



  7. Do you run a credit check?

    In most cases, yes.



  8. Do I need perfect credit to sell my pension?

    Short answer: no, your credit does not need to be perfect. However, you must have a solid credit history. You can still qualify if you’ve filed Chapter 7 or Chapter 13 bankruptcy as long as it was discharged two years ago or more.



  9. How much will this end up costing me?

    Since we’re advancing cash against your future pension payments, you will end up paying more in dollars than what you receive in the lump sum payment. Your money is worth more now than it will be in eight years, hence the difference in totals. The “annual percentage rate,” if you want to compare it to a credit card, varies from person to person, but is typically as low as 13%.



  10. Can I pay off the lump sum payment early?

    The numbers we work out for our lump sum payment to you and your monthly payments are resolved through a rigorous mathematical model. In short, no, early repayment is not typically an option. However, exceptions are a possibility.



  11. What happens to the COLA annual increase?

    You will receive Cost Of Living Adjustment payments electronically every month.



  12. How will this transaction look tax-wise?

    It will look the same as if you hadn’t sold your pension. Your tax situation will not change. You should consult with your tax adviser for more information.



  13. Will this affect my credit report?

    This transaction is not reported to any credit bureaus and remains separate from your credit rating. It does, however, create a portion of debt as it is a cash advance.




Hopefully we’ve answered all of the questions you might have. If not, feel free to Contact Us.

Get a Free Pension Buyout Estimate!