# Pension question love to hear your thoughts



## bernyj (Apr 20, 2019)

I'm 60 and my company is offering employees to take their pensions. Due to my years of service with the company (over 20 years) and age, I can start taking my pension at 100% now, while I'm still employed. There is a short window to decide if I want to role it over into my current 401K, IRA, or start taking annuity payments.  I do have a nice size 401K amount, and continue to contribute to it, I also have another IRA separate from my 401K. My husband has an IRA and is working as well at a different company. Our house and cars are paid for, no children. Just two great fur babies.... My company also offers if I do retire before 65, to keep our health benefits at a reasonable cost until I can get medicare. 

I went to a financial adviser and he of course tried to sell me an insurance annuity, or role over in an IRA. some with fees. I live in PA. which is one of the few states that does not have a state tax on retirement funds. I am in great health, so is my husband. I thought about the tax bracket if I do take it while still working, as it is based on total household income, which I think would be manageable. 

Has anyone else been in the same situation and what did they find out with their research or anything perspective they can share. I did my the monthly expenses and what I can live on, before I start Social Security, as well as my adviser, and they say I am in good shape whenever I decide to retire. That is the big question, I'm not sure when that magic number will be. Most say, when you hate going to work anymore, that is when you know. So far, I don't mind, but it's getting pretty close.  

two years ago my company transformed and a lot of people lost their jobs. There was an opportunity to take a package but I thought I still wanted to work. Again, my company is going through another transformation. Maybe fate will offer me a retirement package and that will make the decision for me.


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## Aunt Bea (Apr 20, 2019)

You really need to do your own homework in order to decide what is best for your situation.

I took my pension as a lump sum and rolled it into an IRA.  

I considered annuitizing it at the time I was terminated but the interest rates were so low that it wouldn't have generated a significant monthly payment.

It turned out to be a good decision for me.


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## Uptosnuff (Apr 23, 2019)

Hi bernyj

Your post left me a little confused.  You can start taking your pension at 100% now.  Then why would you keep working?  Obviously I am missing something.  Is it because you would still be making more money working than what the pension would give you?

I totally understand about your company going through transformations.  My company is doing the same thing, and believe me, it is not better for the employees.  I have two more years until I can retire and sometimes I wonder if I will be able to hang in there. 

I wish you luck on whichever way you decide to go.  Since my husband retired (unexpectedly) I'm finding out it's a big lifestyle change.  From a purely personal point of view, I would have been happier if both of us had retired at the same time.


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## oldman (Apr 23, 2019)

I was a pilot for United and just before I hit the magic number of “65” , which is then forced retirement by the FAA, United offered me a buyout. I was surprised to say the least as I was only 5 weeks from having to retire. As much as I wanted to fly up to the last minute that I was eligible to by age, I took the buyout.

I took the buyout money and moved it into an IRA and when I retired, I moved all of my 401(k) money into the IRA, as well. I knew very little about Roth IRA’s, but the guys and gals that bought into those funds have done very well, which is something you may want to explore. 

Having no large debts and plenty of assets, it appears that you could retire worry free whenever you want, but I would advise you to have a plan before hitting the bricks. You may not want to go with an investment manager, but just to sit down with an advisor may be helpful. Good luck.


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## oldman (Apr 24, 2019)

I went to a program last evening sponsored by one of the local investment companies in my area. I have some loose cash that I need to do something with and was just looking for ideas of what my options are. 

The company pushed annuities, which according to Edward Jones, he would rather go to hell before he bought an annuity. I know of two people who were snookered by this company, but to each his own.

I happen to know the fellow that sells the annuities that were presented last evening. The only annuity he advised against buying was the adjustable rate annuity. I like the index annuity, which invests in=n the stock market. The best thing this fund has going is, “if the markets goes up, you share in the returns, but if the markets go down, you do not lose any of your principle investment.” 

Buying annuities also has tax advantages over buying stocks and buying into tax deferred instruments, like CDs, which is a horrible way to invest money. They pay low interest rates, then you pay taxes on the income, so if you are in the 28% tax bracket like some, you lose again. I am pretty well sold on annuities right now, until someone convinces me otherwise. 

And, you can also buy an annuity that, if you wish, you can receive a monthly check to help with maintaining a higher lifestyle for traveling, or purchasing your toys, or whatever is your poison. It may be at least worth the time sitting down with an advisor and hear what he/she has to say. Just leave your checkbook at home, so that you have time to go home and investigate the information you are handed before jumping in.


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## fmdog44 (Apr 24, 2019)

The latest number on years to live after your retirement date was 18. I beat my brains out on the subject and retired at 66. I documented every single penny I spent on everything for the last three months prior to retiring to make sure there would be no surprises. Asking for and getting advise that will actually be valuable is tough. The OP sounds like he is doing everything right.


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## OneEyedDiva (Apr 24, 2019)

I personally would take the pension, get out while the gettin' is good and take the payments in annuity form, especially since you mention that your company is going through a "transformation".  I would be concerned that it means at some point that benefit package now being offered would be off the table. But as was previously mentioned, investigate and get a full understanding of just what retiring with this package would mean. Since your husband is still working, you both have IRAs and you have a 401K I assume you would be in a good place financially. You are very fortunate since pensions are the exception, not the norm these days. It makes no sense to me that an insurance person would try to sell you an annuity when your pension could be (would be) your annuity but then again, he's trying to make money off you. The icing on the cake here is that your employer will still cover your health care costs. That alone [not getting that benefit] is what gives people pause about retiring.


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## bernyj (May 5, 2019)

you are absolutely right and that is exactly what I am going to do. I don't need the insurance annuity, when my pension is the annuity. He definitely was trying to sell me something. 



OneEyedDiva said:


> I personally would take the pension, get out while the gettin' is good and take the payments in annuity form, especially since you mention that your company is going through a "transformation".  I would be concerned that it means at some point that benefit package now being offered would be off the table. But as was previously mentioned, investigate and get a full understanding of just what retiring with this package would mean. Since your husband is still working, you both have IRAs and you have a 401K I assume you would be in a good place financially. You are very fortunate since pensions are the exception, not the norm these days. It makes no sense to me that an insurance person would try to sell you an annuity when your pension could be (would be) your annuity but then again, he's trying to make money off you. The icing on the cake here is that your employer will still cover your health care costs. That alone [not getting that benefit] is what gives people pause about retiring.


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