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AT&T Pension 2021 Composite Corporate Bond Rate

December 16th, 2020 | 2 min. read

By Jacob Schroeder

at&t 2021 corporate rate

Good news: Lump-sum AT&T pension payouts INCREASE in 2021.

As a trusted financial adviser to many AT&T employees and retirees, we make it a point to post an annual article on recent interest rate changes that will affect the AT&T pension payout.

In November, the interest rate used to calculate AT&T’s pension payouts – the Composite Corporate Bond Rate – was lowered to 1.98%. That means if you’re an AT&T employee who may retire between now and the end of the year and would like to elect a lump sum, your payout may be larger than last year.

Generally, when rates are lowered, lump-sum payouts are increased, and vice versa. Even small changes in the rate will impact the size of your AT&T pension. Therefore, rate changes may affect your decision whether to retire early or continue working, as well as to take an annuity or a lump-sum payout.

Here’s how the 2021 composite corporate bond rate change may affect you:

  • Your lump sum pension will likely increase. When interest rates fall, lump sum distributions rise.
  • If you collect your pension in 2020: you will likely receive a lower lump sum payout
  • If you collect your pension in 2021: you will likely receive a higher lump sum payout

For a better look, here is an example of the impact of this rate:

How does this impact your retirement plan?

Your pension is an important income source for retirement. With this rate change, you may want to reconsider your decision whether to retire early, or to take an annuity versus a lump sum payout upon retirement.

However, it is only one part of your overall financial picture. There are many more factors to consider before you decide, such as your AT&T 401(k) savings, Social Security, other income sources, marital status and more.


Since there is more to consider than just your AT&T pension, you may benefit from working with a financial adviser to reevaluate your retirement plan.

Advance Capital has helped thousands of AT&T employees with all aspects of their financial lives, from managing their AT&T 401(k)plans to maximizing their AT&T pension options. Our 30-year history of working with people like you gives us a unique perspective of AT&T retirement benefits.

If you have any questions about your pension or would like us to help you build a sound retirement plan, please contact us to arrange a meeting or telephone conversation.

You can also learn more by downloading our go-to guide on AT&T retirement topics: The AT&T Employee’s Guide to Retirement.


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