You are here:

Retirement Planning/Will My Pension Continue To Grow


I joined IBM in 2002 and left them in 2007. Having five full years of service made me fully vested. My questions are, If I leave my pension with the company will it continue to grow? If so, how can I track the rate of growth for the pension plan? My age is 61.

The Financial QB
The Financial QB  
Thank you for your question. I hope I can give you some better insight but unfortunately not all pensions are the same. In order to get a more precise answer in reference to your particular pension it would be best if you contacted the custodian directly and ask them the question. If unsure who the custodian is, you will definitely be able to get that info from your benefits coordinator at IBM.

For the most part a pension is a gurantee to pay a certian dollar amount based on a certain mathematical formula, your accrued benefit, and your age. In your particular situation it seems you were able to become vested in 5 years. Usually you will have two options when you are terminated from employment with your pension. You may elect to be paid your monthly benefit for the stated amount of time you select or you may elect to make a Lump Sum rollover of your pension into an Traditional IRA. However, once you terminate employment with your employer who is providing you a pension, it is not common that your pension benefits will continue to grow. The employer is only on the "hook" to provide the benefit you earned. No more no less.

However, please contact the IBM benefit dept. to get more detailed information on your particular benefit.  

Retirement Planning

All Answers

Answers by Expert:

Ask Experts


Richard E. Reyes, CFP


I can provide answers to questions relating to retirement especially relating to; income distribution, tax efficiency, long-term care insurance, life insurance, estate planning, asset protection, variable and fixed annuities, alternative investments and prudent portfolio design.


Through the years Richard has built a reputation as one of Central Florida's expert on retirement income distribution by providing sound, unbiased wealth coaching. We believe that Financial Planning is the problem and Wealth Coaching is the solution. The Wealth Coaching process gives you Peace of Mind, so you can stop worrying about your future. It helps you find happiness as it guides you in the TRUTH of investing, by teaching you how to make wise choices as you journey through your life’s stages. It is all about your relationships and what you value, not your net worth.

Seminole Success Magazine “Retirement Planning” Seminole Success Magazine “Small Business Snapshot” The Orlando Sentinel – Ask the Expert Financial Section (Various) Greater Orlando Broker Agent Magazine “The New It” Senior Market Advisor “Random Reader, Random Questions”

B.S. University of Florida, Gainesville, FL
CFP Certificate, University of Central Florida, Orlando, FL

©2017 All rights reserved.

[an error occurred while processing this directive]