Can I tap my money early?
- What's a defined benefit plan?
- Can I decide how my money is invested?
- What's the difference between a defined benefit plan and a defined contribution plan?
- What happens when I retire?
- Exactly how much will I get when I retire?
- Am I eligible for a defined benefit plan?
- Just how common are defined benefit plans?
- What if I work for the government?
- What are the advantages of a defined benefit plan?
- What are the disadvantages of a defined benefit plan?
- Can I tap my money early?
- Can I count on the money to be there when I need it?
- Will PBGC payouts be as big as I was counting on?
- Is there insurance on government plans?
- How can I make sure my pension is covered by the PBGC?
You can't take out a loan or make an early withdrawal from a traditional pension plan as you can with a 401(k).
Most pensions won't allow you to withdraw until you reach retirement age. Typically that's 65, though many pension plans allow you to start collecting early retirement benefits as early as age 55. But if you decide to start receiving benefits before you reach full retirement age, the size of your monthly payout will be less than it would have been if you'd waited. Ask the folks who run your plan to create a simple table showing you how your payments will vary depending on when you start.
