By Terry Savage on November 11, 2018 | Financial Planning / Retirement

I work for a major airline that went bankrupt in early 2000. My pension was then transferred to the PBGC. I have heard that the PBGC is on shaky ground. I am turning 65 at the beginning of 2019. I plan on working for the next 4 or 5 years. I am wondering if I should begin drawing my pension now as I have heard the the PBGC may not last much longer. I am worried about losing the money that I am “guaranteed”.

Terry Says

The Pension Benefit Guarantee Fund is a “quasi” governmental fund — that gets its money from contributions made by companies that have solvent pensions. And yes, it does guarantee pensions — but couldn’t possibly pay off all outstanding contributions on its own. There is the presumption that the government would step in and “print” the money needed if the fund became insolvent in an economic crisis. We are certainly not there at this point. But at age 65 you definitely should start taking that pension — even if there is an “excalator” clause that lets you get more if you wait. On the other hand, with this pension coming in, you will want to wait until at least your Full Retirement Age (FRA) to claim Social Security.

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