Case Example – Lee Gets Covered By A Pension Plan At Work, continued

PA – Unlike 401(k)s, pensions aren’t portable. You can’t move a traditional pension account to a new employer or into an IRA rollover when you leave a job. When you reach retirement age, you need to get back in touch with us and apply for your benefit.

Lee – When do I receive my pension?
PA – When you reach retirement age. Our normal retirement age is 65, though we allow you to start collecting early retirement benefits at age 55. 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. We can create a simple table showing you how your payments will vary depending on when you start receiving the pension.