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  • NewRetirement User

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  • Your Pension was a benefit that you received from working in the private sector. You can invest (wisely - NO MUTUAL FUNDS OR STOCKS) -- receive a monthly distribution --if you want -- or wait until you are 70 1/2. Your pension will be qualified funds -- you never paid taxes on them -- so once you start distribution you have to continue. The best thing to do is "roll-over" the funds -- do not put your hands on it -- so that it is not taxable. The government does not like when you "touch" the funds. My advise is to roll it into something very very very safe.

    If you have any questions -- feel free to contact me.

    B inman

  • Login to rate this answer:   Answered on 9/10/2008
  • NewRetirement User

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  • This is what upsets me. I won't be able to retire at 62 if I can't use my pension to buy a car and have a back up for expenditures. I will only get $800.00 per month SS and one can not live on that these days. I was so hoping to be able to retire at age 62. If I wait until 65, can they still take my pension?

  • Login to rate this answer:   Answered on 9/10/2008
  • NewRetirement User

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  • Regardless of your plans to take Social Security, you should probably rollover your pension into a qualified account like an IRA. Withdrawals on a Traditional IRA (also known as distributions) can begin at age 59 1/2 and are mandatory by 70 1/2. (Withdrawals before age 59 and a half are usually subject to a 10 percent penalty.)

    NewRetirement can connect you with a prescreened rollover advisor: https://www.newretirement.com/Services/Find_Rollover_3_Steps.aspx

    You should also carefully consider your plans to begin Social Security at age 62.
    -- Learn more about the benefits of delaying Social Security here: http://www.newretirement.com/Services/Social-Security-Benefits.aspx

    -- Learn more about working past retirement, here.
    http://www.newretirement.com/Services/Working_In_Retirement.aspx

    -- Remember that you will not be eligible for Medicare until you are age 65. If you are not working, private medical insurance will likely be prohibitively expensive.

  • Login to rate this answer:   Answered on 9/14/2008
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.