Withdraw a Partial Lump Sum one year

 

When you retire, you have some idea of how much additional money you expect to need to supplement your NASI Pension benefit. Rather than locking your entire SIS Pension account into an annuity contract, you can withdraw a part of you SIS Pension money. If your NASI Pension pays $3,000 per month and you think you would be able to pay all of your expenses and enjoy yourself if you received another $1,000 per month, you can withdraw $12,000 in a lump sum. Put that money in a Money Market savings account at your bank and withdraw 1/12th of that amount each month. This way you are ready for an unexpected expense and if you find you are not using all of the money you thought you would, just wait a few extra months until you are ready to withdraw another lump sum from your SIS Pension Fund money.

 

If you run through the money faster than you expected, you can decide whether to tighten your spending habits or to withdraw more from your SIS Pension Fund money for the next year. You can make as many withdrawals from the SIS Pension Fund as you want. The application process is not as easy or quick as withdrawing from a bank account, but it is not so hard that you would need to avoid multiple withdrawals.

 

 

Internal Links

 

Go to Use the SIS Pension Fund to supplement your income during the years before you get Social Security

Back to Early Retirement

Back to Keep your SIS Pension money flexible

Back to Planning for Retirement

 

External Links

 

Investopedia Money Market Account