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take pension or not..Help?
Old 04-17-2017, 08:35 AM   #1
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take pension or not..Help?

Hi, I am retired with a pension of 1500 a month.. so this is the question ? My husband can not get full pension until he turns 65... so he wants to retire a year earlies... if he pulls his pension a year earlier it will be 3,674 vs waiting a year at 3,941...
I figured that it would take 14 years to make the 44,089 if we did not take a year early.. if we do not take the pension we have a savings that we can pull from...........
would love to hear what you guys think
We both are 63 years old husband going to retire when he turns 64 in October
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Old 04-17-2017, 08:45 AM   #2
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How long do you both expect to live? Will the pension have survivor benefits?
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Old 04-17-2017, 08:49 AM   #3
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If you have money to live for a year then I would wait to take the pension at 65.
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Old 04-17-2017, 08:55 AM   #4
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How long do you both expect to live? Will the pension have survivor benefits?
live in our 80's or 90's... we are looking to take the 100% survivor so if husband lives I will get the same
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Old 04-17-2017, 08:57 AM   #5
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Although the technical response might be to wait a year, there may be other considerations. The OP says she is the same age as her husband and is already collecting her pension. Did she go thru the same analysis to see if it would have been better to wait to collect her own pension also ? Your husbands desire to retire early may be based on seeing that you've already jumped (for whatever reason) and just wants to get out early also? This is not always just a financial decision.
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Old 04-17-2017, 08:57 AM   #6
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[QUOTE=Fedup;1868956]If you have money to live for a year then I would wait to take the pension at 65.[ could you please your reasoning, just asking]
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Old 04-17-2017, 09:02 AM   #7
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Although the technical response might be to wait a year, there may be other considerations. The OP says she is the same age as her husband and is already collecting her pension. Did she go thru the same analysis to see if it would have been better to wait to collect her own pension also ? Your husbands desire to retire early may be based on seeing that you've already jumped (for whatever reason) and just wants to get out early also? This is not always just a financial decision.
Husband job is very stressful.. it did not matter if my pension if I have of wanted it was going to be about the same...
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Old 04-17-2017, 09:02 AM   #8
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Hi, I am retired with a pension of 1500 a month.. so this is the question ? My husband can not get full pension until he turns 65... so he wants to retire a year earlies... if he pulls his pension a year earlier it will be 3,674 vs waiting a year at 3,941...
I figured that it would take 14 years to make the 44,089 if we did not take a year early.. if we do not take the pension we have a savings that we can pull from...........
would love to hear what you guys think
We both are 63 years old husband going to retire when he turns 64 in October
If you can manage to live on $5174/month without the extra $267/month, I think he should retire at 64 instead of 65. Like all of us, he is not getting any younger and I think that if he wants to retire, it's time.

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Old 04-17-2017, 09:06 AM   #9
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If you can manage to live on $5174/month without the extra $267/month, I think he should retire at 64 instead of 65. Like all of us, he is not getting any younger and I think that if he wants to retire, it's time.

it would be hard but we could pull from out 403
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Old 04-17-2017, 09:08 AM   #10
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it would be hard but we could pull from out 403
How about Social Security?
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Old 04-17-2017, 09:13 AM   #11
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[QUOTE=jwr62;1868963]
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If you have money to live for a year then I would wait to take the pension at 65.[ could you please your reasoning, just asking]
Because your comment about it takes 14 years to regain $44k. Plus if your money is in IRA, you won't have to worry about the tax torpedo for RMD. Taking money out of IRA now will reduce that amount.
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Old 04-17-2017, 09:17 AM   #12
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Husband job is very stressful.. it did not matter if my pension if I have of wanted it was going to be about the same...
But if you were still working now, and did not retire when you did, you may have been able to save up enough for him to retire at the same time you did. If you got a new job now, wouldn't it be easier for the both of you to retire together next year when you are both 64 ? Even at a job that paid less than you were making, you'd have the extra money and he would not be the only one having to go to work every day...... Just saying.....
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Old 04-17-2017, 09:18 AM   #13
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How about Social Security?
will not get until 66.. husband will get 2600... I maybe about 400, I have the winfall
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Old 04-17-2017, 09:22 AM   #14
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But if you were still working now, and did not retire when you did, you may have been able to save up enough for him to retire at the same time you did. If you got a new job now, wouldn't it be easier for the both of you to retire together next year when you are both 64 ? Even at a job that paid less than you were making, you'd have the extra money and he would not be the only one having to go to work every day...... Just saying.....
we have a disabled child so I am unable to work... he was in a group home when I was working but found out that he was being abused so we brought him home.
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Old 04-17-2017, 09:22 AM   #15
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will not get until 66.. husband will get 2600... I maybe about 400, I have the winfall
So really, the long term question is if you can live on $8164/month without the extra $267/month.

To me, that $267 seems like pocket change compared with your overall income at that age. Also, think of the effect on your relationship; if he wants to retire, and you encourage him to do so, he may really appreciate such a caring gesture.
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Old 04-17-2017, 09:25 AM   #16
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So really, the long term question is if you can live on $8164/month without the extra $267/month.

To me, that $267 seems like pocket change compared with your overall income at that age. Also, think of the effect on your relationship; if he wants to retire, and you encourage him to do so, he may really appreciate such a caring gesture.
I feel that taking the money early will help our stress level and I think the same thing... we are going to see a guy to help with all of this but I have gone with most of what I have gotten on this forum and another one... thanks
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Old 04-17-2017, 12:57 PM   #17
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So really, the long term question is if you can live on $8164/month without the extra $267/month.

To me, that $267 seems like pocket change compared with your overall income at that age. Also, think of the effect on your relationship; if he wants to retire, and you encourage him to do so, he may really appreciate such a caring gesture.
$267 out of $8,164 is basically a rounding error. If necessary, I'm sure $267 can easily be trimmed from monthly expenses with little or no effort.
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Old 04-17-2017, 01:48 PM   #18
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live in our 80's or 90's... we are looking to take the 100% survivor so if husband lives I will get the same
If the numbers that you quoted are joint life then IMO it is a slam dunk to wait a year (from 64 to 65). The increase in benefits for waiting a year is 7.3%... better than SS and better than a SPIA by a lot.

Break even point with 0% interest is ~79 so if you expect to live to 80s-90s then you will come out ahead.
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Old 04-17-2017, 02:04 PM   #19
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Break even point with 0% interest is ~79 so if you expect to live to 80s-90s then you will come out ahead.
The real question is will they be able to enjoy the little bit extra by that age, or will their energy be too sapped to care? Is it really worth giving up your healthiest year of retirement for an extra $267 when you're almost 80?
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Old 04-17-2017, 02:13 PM   #20
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You don't get it. They would NOT be giving up a year of retirement... OP's DH would still retire at 64 but they would live on savings for that first year and then he would start his pension at 65 rather than 64.

Another way of thinking of it is that they are giving up/paying $44,088 for a joint live pension of $3,204/year for life... a 7.3% payout rate... better than anything commercially available. Slam dunk... easy decision.
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