Among Friends

[Kalli]

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@Kachina624 wrote:




Unless you have reason to believe the plan under which you retire is not sound, this is usually not recommended. I could have withdrawn the money I had in my employers retirement fund. Almost no one does that. I've been retired since 1998, and have already been paid many thousands more than I had in the retirement fund.</B></B>

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For me, this is the exact reason I'm taking mine in a lump sum.  Once I have it, they can't come back and take it away.

In addition, I can then use it to invest on my own.  

[Financialgrl]

Agree.  Use your money for you and use the beneficiary option rather than doing anything that reduces your pension.  I took early retirement and 4.5 years ago was diagnosed with cancer.  My health insurance (which is pretty darn good) hit catastrophic coverage in no time.  I'm 4.5 years out and every drug I take even now after treatment started out very expensive and over the years has now become a generic.  

[Nuttmeg]

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@Kalli wrote:

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@Kachina624 wrote:




Unless you have reason to believe the plan under which you retire is not sound, this is usually not recommended. I could have withdrawn the money I had in my employers retirement fund. Almost no one does that. I've been retired since 1998, and have already been paid many thousands more than I had in the retirement fund.</B></B>

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For me, this is the exact reason I'm taking mine in a lump sum.  Once I have it, they can't come back and take it away.

In addition, I can then use it to invest on my own.  

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No one solution is right for everyone. It depends on your money management skills. I get a check each month, a pension allowance. This works fine for me. 

[151949]

 3 Years after I retired my former employer went into bankruptcy and the pension went to almost nothing. I am very glad I got what I got from it when I could. Many of my former coworkers lost a ton of money.

When my DH company was sold ,after he had been working there 17 years they gave him a $2000 Payout on his pension and that was it.They will rip you off at every possible opportunity.

[Lynneuk]

I agree with most here. Get it all now and help out your kids with little treats here and there while you are alive to see them enjoy it Nice things like vacations or paying their mortgages in December when funds are tight or paying for grand children's extra curricular activities.

[MarieIG]

I seem to have a different viewpoint.

In my opinion, when two spouses each have a pension, they should each name the other as a beneficiary.  Otherwise, when the first spouse dies, the second spouse loses one pension stream and social security.  (Some government employees/ railroad employees may receive drastically reduced benefits and this should be considered as well).  Couple that with a bad turn on investments and potentially increased medical needs.  Seniors may need at home care.  Failure to prioritize each other can cause the surviving spouse to be left in a bad position financially, and maybe even physically. 

During my father's last years, his at home care was extremely expensive.  His pension helped but I completely drained a stock portfolio to pay for at home care.

Also keep in mind that as a person ages, their ability to manage their investments may decline.  They may forget to pay that term insurance the other spouse was counting on, or choose a poor investment that jeopardizes their savings.   An additional automatic deposit can be a  big comfort.  

[Kalli]

It's interesting to read the responses and to see that different things work for each of us and there is no "right" way to finance retirement.

Marie, you make a good point.   If a couple has 2 pensions, and that's their main retirement income, making each a beneficiary of the other is sensible.

[Johnnyeager]

I think that under Federal Law a legal spouse at the time of one's death must be the sole beneficiary, although that spouse can consent and waive in writing that right.