First, let me say that I'm not a financial whiz or investor and can't believe I didn't already know this. I will retire in June and our retirement plan at my work has always been with a national company that works mostly with nonprofits. I met with the lady I have worked with over the years to go over my plan after retirement. I've always had two streams, the one that only my workplace contributed to and then the one I contributed to. Within both plans, we can move our money around in various investments (like Fidelity, Vanguard, etc.) or even keep it in the general accumulation account.
When I retire, the workplace account has to roll into a personal account. It was set up in the 1970's that this account has a general accumulation account interest rate that is guaranteed to go no lower than 3% interest in retirement. I can still move my money into mutual funds or whatever, but that option exists to leave any or all of it in a guaranteed account with 3% interest.
I went back and read all the literature and yes, there it is in writing. So is that unusual to have access to such a good rate (in these days) for a very safe option? Prior to this, my workplace plan had a guaranteed bottom of 1%, which I expected having. I still will probably move money into investments, but that is comforting to know about. Or do others have access to this rate?
When I retire, the workplace account has to roll into a personal account. It was set up in the 1970's that this account has a general accumulation account interest rate that is guaranteed to go no lower than 3% interest in retirement. I can still move my money into mutual funds or whatever, but that option exists to leave any or all of it in a guaranteed account with 3% interest.
I went back and read all the literature and yes, there it is in writing. So is that unusual to have access to such a good rate (in these days) for a very safe option? Prior to this, my workplace plan had a guaranteed bottom of 1%, which I expected having. I still will probably move money into investments, but that is comforting to know about. Or do others have access to this rate?