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Pro Football Hall of Famer Mike Ditka died Friday, Oct. 9, 2026. He was 86. (1)
Football fans will remember him as a record-setting tight end and as the coach on the Chicago sideline.
The Hall of Fame also notes that Ditka “used his voice and stature to push for greater pension and health care benefits for retired players,” especially those from his era “who struggled financially after their playing days.” (1)
His fight is a reminder for the rest of us. If men who played on national television could struggle once the paychecks stopped, anyone can.
I’ve been a CPA since 1981, and a pension is one of the few retirement assets where a single form, signed in a hurry, can shape your family’s income for decades.
It’s also an asset fewer people have. Only 14% of private industry workers had access to a traditional defined benefit pension in March 2026, compared with 70% who had access to a defined contribution plan like a 401(k), according to the Bureau of Labor Statistics. (2)
If you’re one of the lucky ones, the choices you make at retirement matter.
The Department of Labor says a married worker’s pension generally pays out with a survivor benefit unless the spouse signs a written consent to give it up. (3) The federal backstop has limits, too. (4) And taking a lump sum has its own tax rules. (5)
Here are 5 pension decisions to get right before you sign anything.
1. Find out exactly what you’ve got
Before you can make a smart choice, you need the numbers. Ask your plan for a benefit statement showing your monthly payment at different ages and under each payout option.
Compare them side by side. A few hundred dollars a month, multiplied over a 25-year retirement, adds up to real money.
2. Monthly check or lump sum? Know the tax rules first
Your plan may let you take a lump sum instead of a lifetime check. If the plan pays it to you, the IRS says it’s subject to mandatory 20% withholding. Withholding doesn’t apply if you roll it directly into an IRA or another plan. (5)
If you do take the money yourself, you have 60 days to roll it over. (5) Miss that window, and the IRS says the payment will generally be taxable, and you may owe additional tax.
My take: a monthly pension is insurance against living a long time, and few things replace that. A lump sum gives you control and something to leave your heirs, but only if you manage it well.
This is a decision worth a second opinion. A free service like SmartAsset matches you with up to three fiduciary financial advisors, who are legally required to put your interests first. It’s aimed at people with $100,000 or more in investments.
The questionnaire takes about 10 minutes and asks for a phone number near the end, but you control whether and when you respond to anyone. SmartAsset only makes the match; the advice comes from the advisor you choose. Find a fiduciary advisor through SmartAsset.
3. Don’t sign away your spouse’s check without understanding it
In a traditional pension, the default for married workers is a qualified joint and survivor annuity. It pays over your lifetime and your spouse’s, and the surviving spouse must get at least half of your benefit. (3)
To choose a payment option without a survivor benefit, your spouse must sign a written consent, and a notary or plan representative must witness it. (3)
Here’s the trade-off. Choosing the survivor benefit reduces your monthly check, because payments may continue for your spouse’s life. Skip it, and you get benefits for your lifetime only, so if you die first, there’s no survivor benefit for your spouse from that pension.
Quick aside — most internet financial advice comes from people who weren’t alive during the last recession. I’ve been writing about money for more than 35 years. Want rock-solid advice? Sign up for the free Money Talks Newsletter. Takes 10 seconds. No fluff. No spam.
Some couples skip the survivor benefit and buy life insurance to protect the survivor instead. That can work, but only if the coverage is in place and affordable before you give up the survivor benefit. Price it first.
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4. Know the limits of the federal safety net
If a single-employer pension plan fails, the Pension Benefit Guaranty Corporation steps in, but only up to a point. For plans that fail in 2026, the maximum guarantee for a 65-year-old taking a straight-life annuity is $7,789.77 a month. (4) Multiemployer plans have different rules.
The PBGC says the maximum is lower for people who retire younger and for retirees who choose an annuity with survivor benefits. (4) If your promised pension is large, or you plan to retire early, check how much of it is actually guaranteed.
5. Ask whether your check keeps up with inflation
Ask your plan one direct question: does my payment ever go up? If the answer is no, inflation slowly shrinks it.
Here’s the math. If prices rise 3% a year, after 10 years a $2,000 monthly pension buys only about what $1,488 buys today. Your other savings and Social Security have to fill that gap.
My honest take
Ditka spent part of his life after football fighting for players who were left behind when the cheering stopped. That’s worth remembering.
A pension is a promise, and the decisions you make when you claim it can last as long as you and your spouse do. They deserve more than a quick signature on your last day at work.
Read the options, run the numbers and talk it over at the kitchen table. Your spouse should be part of that conversation — the law gives them a say for a reason.
Sources: 1. Pro Football Hall of Fame; 2. Bureau of Labor Statistics; 3. U.S. Department of Labor; 4. Pension Benefit Guaranty Corporation; 5. IRS
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