Finally the time has come to retire and I have to pick a pension option. Two choices (1) single life annuity and
(2) level income to age 62.
I'm 57.5 as of May 2004. So if option 2 is picked I would have 4.5 years of level income.
Level income is an option that gives me more money for the 4.5 years and at age 62 is reduced by the amount of social security that they estimate I would be entitled to receive.
So, that means that I would receive the same amount of money ( pension + ss ) for the rest of my life.
After crunching the numbers, the break even point is about 19 years from now. That's when the single life annuity passes the amount received from option 2. That's assuming that I would invest the dfference between option 2 and option 1 for the 4.5 year period and receive a modest 4% return.
I would be interested to hear what others have to say about my choices.
(2) level income to age 62.
I'm 57.5 as of May 2004. So if option 2 is picked I would have 4.5 years of level income.
Level income is an option that gives me more money for the 4.5 years and at age 62 is reduced by the amount of social security that they estimate I would be entitled to receive.
So, that means that I would receive the same amount of money ( pension + ss ) for the rest of my life.
After crunching the numbers, the break even point is about 19 years from now. That's when the single life annuity passes the amount received from option 2. That's assuming that I would invest the dfference between option 2 and option 1 for the 4.5 year period and receive a modest 4% return.
I would be interested to hear what others have to say about my choices.