Help with pension decision
I am eligible for a very small pension from an employer of 30 years ago. I can collect the full pension at age 60 (about $3,500/year). Or, starting at age 55 I can collect this payment early at a penalty of .3%/month (3.6% per year). This is a COLA'd pension once I start collecting. I do not need the money now to live on, but I could certainly invest it or use it for every day expenses in my ER. Other than the obvious decision of being able to earn more than 3.6% on these funds, is there any other reason to wait to collect. I know SS penalizes something like 8% per year for taking it early.
I'm not very knowledgeable about pensions and I thought others out here would be. Thanks in advance.
Retired on 5/31/2011 at 54