Expert: Allen - 3/28/2011

Question
My husband has liver cancer. The doctor said he has 4 to 12 weeks to live. My husband is 56 years old. He wants to retire now so I can get his pension. I asked him what difference does retiring make. He said I would get his pension. He has a pension and a 401k. Is retiring now  a right move? Are there pros and cons? Thank You.

Answer
I'm sorry to hear about your husband. Having lost my wife to cancer, I can understand and sympathize with your situation.

As far as the pension, I don't know the correct answer. You need to contact the plan administrator and find out:
1. what the benefit is under what is known as the joint and 100% survivor option. This will give you the largest possible pension after your husband passes.
2. what the death benefit is under the plan and what other death benefits are paid to the spouse of an active employees.

It is possible that you will receive more under #2 than you would under #1. However, there is no way for me to know the answer.

As far as the 401k, I don't think retirement affects the amount that you will receive. Under most plans you will receive the amount in his account. However, you need to verify this with the plan administrator.

One other thing - if possible get the answers in writing.