Retirement investment
Hi Terry,
I am 57 years old and work for a township that has IMRF. I will be vested in August and once I reach age 62 my pension will be approximately $300 a month. I have paid in about $11,000 that I can get back if I stop working before I become vested. I am wondering if it would make more sense to take out the $11,000 and invest somewhere that I would make more than $300 a month. Do you think this is possible or should I just become vested and take the $300 a month once I turned 62?
Thanks for your advice!
Terry Says
So here’s how you can figure that out (though the numbers might change just a little in five years).
Go to www.ImmediateAnnuities.com and insert the age (62) and the lump sum amount ($11,000) and your gender — and then click to see what (under current interest rate assumptions) you could get in monthly payments for an immediate annuity. My guess is that you are getting a pretty good deal from IMRF. And do check to make sure that won’t increase if you work longer.
