Video: What if I Die Before Collecting My Pension?

What if I Die Before Collecting My Pension?

If you die before collecting your pension, a few key things are going to happen next. Find out what happens if you die before collecting your pension with help from a financial expert in this free video clip.

Video Transcript

Hi, I'm Dave Boike from Retirement Resources. We're going to talk about pensions today. Specifically, what actually happens if I die before I get a chance to collect my pension? Well if you happen to be an employer at some corporation or company that has a pension program and you've been there for a number of years, in other words you've been there long enough to be vested in that pension plan, chances are there are benefits for you if you reach retirement age and start collecting your pension, but there's also benefits for your spouse. If something was to happen to you, more than likely there's a default option that is going to pay some type of benefit to your spouse. It's typically not 100 percent of what you would receive, but it's anywhere typically from say 50 percent to maybe 65 percent of your benefit. Now let's say that you are already retired but you haven't started your pension for some particular reason. Again, usually there's that option that you can choose to take nowadays what they refer to as a lump sum buyout from these pension plans. There's a sum of money calculated inside of most pension plans which is designed to pay out a benefit to you for the rest of your life and for your spouse for theirs if you have a joint and survivor option. And nowadays, many folks are able to request that lump sum be rolled over to their private IRA and then they can gauge how much they take out on a monthly basis and provide benefits not only for their spouse, but many times leave benefits to their children, grandchildren possibly, church or charity that they care about. So pension planning, there's been some major changes here in the last couple of years. It's important for you to meet with a trusted financial adviser that's got some background with retirement planning, pension planning. Thanks for joining us today. I'm Dave Boike, and I'm from Retirement Resources.

What if I Die Before Collecting My Pension?

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