28 Jul Will my mom lose her teacher’s pension if she moves out of state?
Q. My mother has a pension from working in one of New Jersey’s school districts. She’s under the impression that she will lose her pension or it will possibly be reduced if we move her to Pennsylvania. Is there any truth to that?
— Trying to help
A. Congratulations to your mom’s pending retirement.
You can tell her she has nothing to worry about if she makes the move.
“Pensions are protected benefits and once you earn a benefit, it can not be taken away from you,” said Jerry Lynch, a certified financial planner with JFL Total Wealth Management in Boonton. “Think O.J. Simpson, who lost almost everything — except his pension.”
Lynch said it’s not uncommon for people who earned a pension in New Jersey to move out after they retire.
“It’s very expensive to live here with home prices, taxes and other things. Generally, the only people who stay have their kids and grandkids living here,” Lynch said. “The bottom line is that she is fine, can have fun and enjoy retirement.”
Email your questions to .
This story was originally published on July 28, 2022.
NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.