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Just to respond, I talked with the retirement person and this is what I was told. He told me I was already vested with the company. He said that I would continue to earn 5% compounded interest on those funds and my companies matching funds. He said it would be compounded for 29 years and upon me meeting eligibility to retire at age 60. All the interest plus my deposits and my companies matching funds would allow me to retire the account. He said it is a 2:1 match and my companies matching fund is 36,101.
Then leave it there, if you take out the money now, you will pay a tax penalty & loose this start to your retirement funding. If you want to move it, roll it over into an IRA.
I am probably going to be terminated soon and was very recently vested at the company I work for. They take 7 percent out of my pay check. I also want to mention that this is a municipality so this is a pension and not a standard 401K. I only have about 15K at this time but the company matches 2:1. I spoke with the company in charge of the pension and was told that I am eligible to retire at 60 and 62. I think at the age of 62, I would have a 1,600 dollar pension (I know not much). I am still rather young, (in my early 30's.) Should I withdraw this money upon termination or just leave it alone. My thoughts were just to leave it alone. Thanks for any advice.
I don't believe the $1600 a month if you only have about $15000 at this time, but if it is $1600 a month, that's fairly solid. That's $384,000 over 20+ years of retirement. If that's the case, I'd leave it as is.
I don't believe the $1600 a month if you only have about $15000 at this time, but if it is $1600 a month, that's fairly solid. That's $384,000 over 20+ years of retirement. If that's the case, I'd leave it as is.
I worked at a YMCA for 5 years and contributed $4800 in total, matched by the local Y. I was 34 when I left. I left my money with the Y retirement system because I knew it was one of the best in the country. Fast forward to 3 years ago (30 years after I left employ), I took my Y pension - $12,400/year. My $4800 contribution was worth over $120,000 30 years later. Sure is nice having that supplement my monthly income
To the OP, best to check the history of your employer’s pension plan. Of course, past performance does not guarantee future success.
I worked at a YMCA for 5 years and contributed $4800 in total, matched by the local Y. I was 34 when I left. I left my money with the Y retirement system because I knew it was one of the best in the country. Fast forward to 3 years ago (30 years after I left employ), I took my Y pension - $12,400/year. My $4800 contribution was worth over $120,000 30 years later. Sure is nice having that supplement my monthly income
To the OP, best to check the history of your employer’s pension plan. Of course, past performance does not guarantee future success.
This isn't just money; these are service credits towards a pension. If you work for another employer with a pension, there may be reciprocity. Myself, I would not be in a hurry to permanently give up service credits. I would leave the money where it is for now.
This is what I thought as well. There are several county or local government jobs where I can receive service credit for my work, so I am not in a hurry to take them out, because that extra 1400-1600 would probably be very beneficial in the future when I get in my 60's. I have looked at the record of my pension plan and it is funded very well, but as a lot of the posters are saying, that is no guarantee that it will continue to be well funded. I also think that the amount that I will get after only 5 years of work is pretty good. If only I would have had a higher wage.
If you leave it there, make sure you don't forget about it 30 years down the road. The amount of unclaimed money people leave behind is pretty mind boggling.
If you leave it there, make sure you don't forget about it 30 years down the road. The amount of unclaimed money people leave behind is pretty mind boggling.
As long as she keeps her address current with them, they won't lose her.
Don't touch it. You would need $225K to duplicate a 25 year annuity at $1,600 a month. As many others upthread have said, $1,600 until you die - i.e., a lifetime annuity (going the way of the dodo bird) - is not doable even if you take that $15k and put it in the market at 8% return. Over the next 30 years, that $15k may grow to $150K - assuming you choose the right investment @ 8% and have the discipline to keep your hands off. That money will look tempting as life goes along.
Don't touch it. Forget it's there. You'll be very happy you did.
Is the $15,000 in the account now just your contribution? If so, that $31K figure would be the 2:1 match and the entire $46,000 would continue to appreciate until you pull it out. Is the five percent guaranteed or just a projection? If it's guaranteed your money will double twice before you're sixty. Let's call your balance $200,000 at that time.
That could give you the $1600 a month you are talking about depending on the options available regarding length of payout and survivor options and guarantees built into this government plan. A normal account would need an interest rate of about 7.5% to payout for just twenty years before it was gone. These are the questions you need to have someone help you with so your golden goose does not succumb to the diseases called ignorance and greed.
Bottom line for today: Leave it alone! Don't even think about moving it if the numbers I think you're working with are close to being real.
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