FinanceDude
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Aug 3, 2006
- Messages
- 12,483
I think many pension plans give a choice at the time of retirement for COLA or non-COLA, with a lower payout for the COLA option (this is how my wife's plan is set up). I wouldn't be surprised if many/most select the non-COLA option to get the higher initial payout.
Most folks just pick the highest dollar amount (non-COLA) and take the 50% percentage survivor option, because they are not very astute. I even met a guy that took "lifetime income only" on a non-COLA pension at retirement even though he had a bout of prostate cancer 3 years before, he was 5 years older than his wife and she did not work...... So, somtimes it's about an educated choice........