Leaving a Job: Should you cash out your pension?

When you leave your job, should you be cashing out your pension or leaving it to provide you income at retirement?

[Longjohnsilver]

My wife left a company back in 1994, and that company had a pension plan. When she left, she has just over $10K in that plan. The company had a policy that if you had under $10K you could cash it out. If it was over, then you had to leave it. Now I firmly believe taking it and investing it would have been better, but the defined benefit is guaranteed and not so bad all things considered. She started drawing the benefit three years ago. It was $3600 a year, and so she has already gotten her $10K back and as she’s in good health, it is highly likely she will draw that for many years to come. Nonetheless, taking the $10K and investing it would have probably been better, but it was not an option in her case.

[mbronc]

Also, if u cash out your pension that money can be passed down if and when u die, whereas if your collecting a pension all that income stops once u pass away.

[martharhoades]

Thank you very much for that information.

[TheButcher]

That company owns that pension money, if you cash it out and roll it into a 401k or an IRA, now that money is in “Your Name” it belongs to you.

[itsnotajeep]

I have a question, I worked four years for the city where I’m from can I cash out or I lose what ever the city deducted from me ????

[fivedeeD]

Let go after 27 years of service. I'm 50. Need to borrow a portion from pension, is that allowed? I am considered 'vested' at my job but THEY let me go. I requested this already and await their determination. (Determination? Isn't it MY money and THEY let ME go?)

[Staticsun]

I'm in DESPERATE need to pull everything regardless of the penalties from VRS. IM 46 and if I don't, well let's say I must. My question is have they changed a person's ability to pull out early? I have 21 years invested. My future RELIES on this. I have a VALIC retirement I e put into for near 20 years. I took a loan because I wasn't able to pull out early. The fact I couldn't with VALIC has me worried I will be out of luck with pulling from VRS. The stress of worrying i won't be aloud to cash out is killing me. Any help would be greatly appreciated. God I wish I had business sense.

[MOBROOKS]

Thanks for this video.
Does a company have the ability to just decide not to pay out pensions?

[davidwilson]

Hi Can I ask for a bit of advice.

We setup a company 1998 there were three business partners all partners are company directors we setup a company pension policy scheme we were all trustees of the pension policy. Sadly one of the directors passed away and I left the company in 2008.

I asked Pension Company in 2020 about my annual statements which I’ve never received I explained I do not work for that company since 2007. They told me to contact my old company to send a letter to them tell them that I have left the company and send my statements to my home address.

I’ve spoken to the remaining Director twice last year asking him to send a letter for me for some reason he doesn’t seem willing to do it for me.

I don’t what to do or where to go with this is or who I contact for advice.

[zxzxzxz]

Hello,
So my dad's company got a "Lump Sum Pension Offer" to their employees because the company about to shut down in 2016. The deadline was Nov. 2016 to submit the forms that they offered.
There were 3 options for him to choose from:
1- Elect to receive a single lump-sum payment
2- elect to start monthly benefit payment
3- wait until later to begin receiving your pension
At that time, he chooses option 3 and does nothing.
Now 2021, he wants to rollover that pension $ to a Roth IRA or take the lump sum. Is it too late for that? If not, where was that pension $ go? because the company he worked not exist anymore so was the phone # for help assistance. Who do I contact to get help with this situation?

Thanks for your help

[doje]

im leaving the union is it possible for me to cash out my pension from the union

[johnwedgeworth]

If I retire at 40 can I take the monthly pension distributions without an early withdraw penalty?

[travisg]

Big mistake! Mine was small, 27k. I decided to reinvest it in crypto markets, I made a short gain, then everything went to crap with the market crash. I then got scammed by a crypto giveaway, lost more money. I threw away about 5k on a ebike with its accessories and it got stolen! Now, 6 months later, have little to nothing left! Don't cash out your retirement!