I was told that the 6% penalty for retirement at 50 years old with 25 years of service was removed can any verify this to be true?
3 replies (most recent on top)
The first reply is correct, the penalty is only removed under a special offer from the company. Another point that needs to be made is, even if they remove the age penalty, you need to understand or talk to a financial advisor. While rates are at all time lows and the lump sums are high, certain IRS rules only allow a specific percentage (72-T) you can be paid from your lump sum under the age of 55. Having a million dollars in a retirement account doesn’t mean you have access to it right away. Please learn about all this before you leave, it will make retirement easier and more affordable. I hope this long winded answer helps.
See the following links for Social Security:
https://www.ssa.gov/oact/quickcalc/earlyretire.html
https://www.ssa.gov/benefits/retirement/planner/agereduction.html
I believe that is true only if a special eisp is offered.