age 55 and pensions

[happyscooter]

When DH retired last year, we went to talk to the financial adviser that the company hired. I knew he was too young to collect his pension and he already had another job lined up. The adviser asked how old he was and DH said 51. The adviser said if you were 55 you could collect your pension. Government laws have changed. DH contacted a few former co-workers and informed them of this. 2 who had been on the fence took retirement. After working at a place since you were 18 years old, 55 years old seemed ancient.

Any of you collecting pension at 55 and when did you start? I hope that rule stays in effect for a few more years. ;D

[Tired Tess]

You can start collecting your pension at my place at 55.

[happyscooter]

It previously was 59 1/2 at DH's job. So we were floored when the adviser said 55. Just holding out for 3 more years.

[NancysSummerSip]

I have one pension that will start when I turn 55, actually. It was from my first job out of college. Not a lot of money, but it will be nice to have.

[dancinmama]

The company that DH works for allows for pension payments to begin at age 55. DH will retire next year at age 55 after having worked at the company for over 31 years.

Another reason to wait until age 55 is so that you can access the funds in your 401k without penalty. You can withdraw from your 401k without penalty if you are 55 years are older at the date of separation from the company - otherwise you have to wait until you are 59 1/2.

The last reason for waiting is that the company DH works for does not pay retiree medical if you retire before you are 55. You can retire at 50, but you cannot draw a pension until you turn 55 and you will never receive retiree medical.

[Deleted]

I've got a small pension (about $15K/year) from a GE sub that will start at age 60. I'm 58 now and have every intention of still being at work at age 60, in which case I'll see if I can get a higher benefit by postponing it. Too much of it will disappear in taxes if I collect it while I'm still working.

[Gardening Grandma]

At the job I retired from, you could collect a full pension if you had been there 30 years. I retired at 54 with 32 years.

[happyscooter]

You guys give me hope. As much as DH has said over the past few years that he was looking forward to retirement, when it actually happened, he was surprised it wasn't as much 'fun' as he thought it would be.

[happyscooter]

And my FIL is keeping him hopping now, BIL lives out of state. So it is all falling on DH. If he wasn't working, I don't think he would have any time to himself.

[april47]

I have a pension coming at 65. It's from a place I left in 1997. I'm almost 64 now and called to see if I could get it now and they said I have to wait to 65.

[Phoenix84]

At my agency you can collect a pension once you reach the minimum retirement age and have a certain number of years. The minimum age and the number of years needed varies, but for me (and most people who make a career here) it’s age 56 and 30 years or more. For people retiring now it’s 55 years. However if I wait until age 62 I’ll get a more generous percentage of my high three.

For now, I plan on working until I'm 63, that would be just over 40 years and give me 44% of my high three as a pension.

[Bluerobin]

We had an 85 rule (age and length of service). Getting 85 got the whole pension, but you had to be a minimum of 55. When Ihad 82, the company was sold. We also had an option that would allow age 55 retirement at a reduced rate. I took that and continued working for the new company for a little while. I then decided to retire at 57 rather than trying for an additional pension at the new company. Best thing I ever did.
Nope, the pension does not cover my expenses, but I manage with investment income. If you plan for it, early retirement can be a good thing. The wife got her 85 and had retired well before me.

[happyscooter]

Yes, it used to be if your age and years of service added up to a certain number, you could retire with full benefits then. Then they merged with another company.

[Bluerobin]

Happy, you in the freight industry? If you qualify early, take it. I banked my pension for a few years. DW retired as a "test".

[happyscooter]

no, DH didn't qualify. but we had money without his pension, so it was a go. and he is working another good job. 401k match and we have retirement benefits through previous company.

[happyscooter]

again, he is not the kind of person who can be happy just sitting. and we have no home improvements to do. you can only cut grass so often. charity work is ok a few times a year. but certainly if you have to be somewhere every day at a certain time to volunteer, you might as well have a job and get paid for being there.

[Bluerobin]

Even if he doesn't retire, take the pension as soon as you are eligible. I have already collected the entire cash buyout amount. The longer you can collect, the better. Thank goodness they provide benefits - the pension barely covers it. Hope it lasts until medicare. In the first few years, bennies were free.

[happyscooter]

yes, he will be at the financial adviser's office at 9:00 the day he is qualified.

[happyscooter]

thanks for everyone's comments.

[Deleted]

Where i work it is 30 years, regardless of age.

[Deleted]

The company I work for now you can start taking your pension at 55m I have 29 years to go to reach 55 and been here 2 years.

[ambellamy]

At my work you can take a reduced pension percentage at 50, or the full percentage at 55...

I got hired very early (age 18-- but part time, and at age 20 I was full time), but i was able to put contributions into my pension from before I was eligible for it (when I worked there from 16 to 18)... So while I worked full time for 5 years, I got one year of service for my work from 18 to 20, and almost another year from 16-18.

The max you can have in years is 38, so I'll take a full pension at 56 if I want.

[ambellamy]

May 16, 2011 21:11:14 GMT -5 ambellamy said:

At my work you can take a reduced pension percentage at 50, or the full percentage at 55...

I got hired very early (age 18-- but part time, and at age 20 I was full time), but i was able to put contributions into my pension from before I was eligible for it (when I worked there from 16 to 18)... So while I worked full time for 5 years, I got one year of service for my work from 18 to 20, and almost another year from 16-18.

The max you can have in years is 38, so I'll take a full pension at 56 if I want.

Oh and BTW, new hires effective this July won't get to retire until 60 with a smaller percentage ... They may have a 55 option, but with an even smaller percentage than the 60.

They are trying to reform pensions, but they can't modify current employees, just new ones... so we are paying more money each year for our current plans.

[TheOtherMe]

I was a federal employee who started in the dark ages at age 17. I could have retired at 50. However, an early out retirement was offered when I was 47 and I took it.

[happyscooter]

I just hope they don't change the rules in a few years and he will be able to collect at 55.

(Anybody ever played a card game with someone and they changed the rules as the game progressed? That's what I am thinking will happen.)

[TheOtherMe]

I played a game with my 3 year old great niece yesterday and the rules kept changing. ;D I do know what you mean. They kept changing so she always won and business wants to win.

[Deleted]

"I just hope they don't change the rules in a few years and he will be able to collect at 55."

There are some court cases that effectively state that they can't change the rules for folks who were hired and promised X pension. Hence why the new hires tend to get crappier terms. But if a company goes BK and the Pension Guaranty Corp has to step in there are limits to what they will pay out. Just ask the pilots who flew for United Airlines for 30 years.

[kimber45]

it used to be if your age and years of service added up to a certain number, you could retire with full benefits then.

DH falls under that. Where he works it is the rule of 90 (age plus length of service) He will be able to retire at 55 1/2. The only drawback is health insurance. In the meantime I will be looking for a full-time job to be able to provide the benefits once he can retire.