SoReady
Recycles dryer sheets
Hi all.
I received notice from my old company that there are changes coming to my pension. Nothing stays the same I guess.
I am 58 and figured on taking pension sometime between 62 (~42k/yr) and 65 (~$52k/yr). I'm currently retired and have after tax funds to last to that age range.
The pension changes being communicated is the company is giving the pension responsibilities to Prudential Insurance. I have 3 choices:
1. Take a lump sum. I expect more details to come on this regarding how much that might be. But if I take this I need then to determine how to invest correctly e.g. annuity, balanced fund, CD's, combination of all, etc.
2. Begin taking the distribution now. I think this option is for those that may not be eligible for pension distribution yet. I am so it doesn't pertain to me.
3. Leave everything as is and let Prudential pay out when I want, sometime between 62 and 65. Where I have some hesitancy is that when the company has the pension it is guaranteed by PBGC. At prudential it is not.
In my plan the amount coming from pension (and SS) is my floor which covers most of my basic expenses. My other investments then cover discretionary investments. So I would like to continue having a safe vehicle that can cover the non-discretionary expenses.
For now (until I get more specific information regarding this change) what are peoples thoughts on Prudential having the pension and not being guaranteed by PBGC? Would I have much to worry about with just going with option #3?
Thanks,
Bob
I received notice from my old company that there are changes coming to my pension. Nothing stays the same I guess.
I am 58 and figured on taking pension sometime between 62 (~42k/yr) and 65 (~$52k/yr). I'm currently retired and have after tax funds to last to that age range.
The pension changes being communicated is the company is giving the pension responsibilities to Prudential Insurance. I have 3 choices:
1. Take a lump sum. I expect more details to come on this regarding how much that might be. But if I take this I need then to determine how to invest correctly e.g. annuity, balanced fund, CD's, combination of all, etc.
2. Begin taking the distribution now. I think this option is for those that may not be eligible for pension distribution yet. I am so it doesn't pertain to me.
3. Leave everything as is and let Prudential pay out when I want, sometime between 62 and 65. Where I have some hesitancy is that when the company has the pension it is guaranteed by PBGC. At prudential it is not.
In my plan the amount coming from pension (and SS) is my floor which covers most of my basic expenses. My other investments then cover discretionary investments. So I would like to continue having a safe vehicle that can cover the non-discretionary expenses.
For now (until I get more specific information regarding this change) what are peoples thoughts on Prudential having the pension and not being guaranteed by PBGC? Would I have much to worry about with just going with option #3?
Thanks,
Bob