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Are most people able to take the money out of their pension early by just accepting some penalties? That could mean a sort of run on pension funds if people ge
by BubRoss 7y ago
Are most people able to take the money out of their pension early by just accepting some penalties? That could mean a sort of run on pension funds if people get spooked and pensions are under funded.
- dragonwriter 7y ago> Are most people able to take the money out of their pension early by just accepting some penalties? Not really. I think a fairly typical pension plan you can withdraw funds from only if you leave employment covered by it, and the refund is typically of your contributions plus interest (not employer contributions made on your behalf.) Note that this (and the article) uses “pension” narrowly to mean “defined benefit retirement plan”, not broadly to mean “retirement plan, including defined contribution plans as well as defined benefit”. Defined contribution plans can usually be withdrawn from at a penalty more freely.