Anyone cashed out the pension when they resigned? I am mid-40s so have more than 15 years service but am not 55 yet.
11 replies (most recent on top)
Take the lump sum and invest it in Bitcoin, find something you enjoy doing for a living and retire whenever and however you want.
I think if you leave before 55, all pension calculations are based on age 65 vs 60.
@ea - Spot on
@ed use the pension estimator to tell you
If I’m 45, resign now, and take it out in 10yrs… is there any penalty? Aside from time?
If you are older than 45, you should really consider the financial consequences. Yes, if you are completely miserable at work or switching industries, then go ahead and leave but if you are going to another O&G company, prepare to be just as disappointed only with less money in the end due to what you’re leaving on the table. If you’re US-based, you’ll need to make up about $1M in the time you have left working vs the difference in lump sum between leaving now vs at 55. Obviously don’t know your situation but use the pension tool and it will show you the difference so you can make the best decision for you. I wish you the best of luck in your future.
Yes you can take it as lump sum—- 8% of your last 3 years salary *Year of service
@OP LMFAO. Pension won't be there in 15 yrs at least in its current form
There should be a pension calculator. You can take the pension as lump sum or annuity. But choose based on what make sense for you. When interest rates are low the lump sum is high. That is why so many retire a few years ago. It made sense financially.
Your last day is important in the pension calculation as well as cobra coverage among other things.
You can either take it out as a lump sum or leave it in the pension fund until you hit retirement age.
That is what you have to do - there is no long an option.