Get Back on Track Earning Money for Your Retirement
Are you feeling the financial effects of the GE pension freeze?
Retirement investment choices are falling more and more on the employees rather than the employer. When pension cuts happen, you are left to scramble to rework your financial plan to review if you have enough money for the future.
What to Expect
When your pension is frozen, it no longer accrues benefits, but you do receive whatever amount of money was already accumulated. This means potential earnings are lost especially for long-tenured workers, as pensions are back-loaded, meaning little is earned in an employee’s early years and a lot in the years leading up to retirement.
Get the Advice You Need
If you are affected by the GE pension freeze, you have some important decisions to make. Do you want to retain the monthly pension payments or receive a lump-sum payment and invest it yourself? It’s important to be prepared for these decisions and educated about your options.
Here’s a closer look at GE’s pension freeze:
- Employees will receive no additional benefits or contributions beginning January 1, 2021
- GE will contribute 3% of employee salary to a 401(k) plan
- GE will provide a 50% match contribution up to 8% of employee 401(k) contribution
- GE is offering a lump-sum payment plan, for a limited time, to 100,000 former employees who have not started receiving benefits
Contact our experienced advisors at Mooney Lyons to help calculate your options and determine the best decision for your financial future. We take the guess work out of retirement planning and will have you back on track!