Cashed in Defined Benefit Pension – Why it was a good idea?

(Note – the numbers below are a fiction designed to make the math simple. Before making the same choice, you will need to do the math yourself).

At a prior employer, I managed to become vested in a Defined Benefit plan before they “froze” it.   As a result, I was entitled to approximately $1,000 per month beginning at age 65.  BUT, they decided to give me an opportunity to take an annuity now (about $270) or a direct rollover to my IRA.  

Simply put, I chose the direct rollover to my IRA.  

Why? Flexibility.  Although my income right now is very good, I am in an industry that doesn’t have many 60-70 year olds.   When that time comes, I want to have the flexibility to act in my own interest.