Originally Posted by tbw1200
I have options for an annuity with leveling options for 62 to 67. For example, if I chose 62 the payment would be 5000 per month and reduced to 3000 per month when I turn 62. For 67, I would get 4500 per month and reduced to 2000 per month when I turn 67. It just seems like I could chose the 67 option and really start drawing SS at 62 and thus the double dip (not really double since I think the level is 50% of the SS estimated payment). This is all based on a retirement date of January of next year. If I don't do leveling then the payment would be 3200 a month (hence the leveling option is attractive).....
I'm confused, but curious. What age are you now? Was the bold a typo for 67? Or are you collecting prior to 62 (OK, this seems to make some sense)? How many years prior to 62?? COLA?
So $5000 between now(?) and 62, then $3000 for life?
$4500 between now(?) and 67, then $2000 for life?
That doesn't seem right, either - can you spell it out (maybe I'm just being thick?)? Or are you including SS in these figures
I'm pretty sure these leveling algorithms are designed to be revenue neutral for the average life expectancy of their population. They offer a higher payment now, for a later one later.
So I don't think they care if you take SS early, at FRA, or delayed. They figure they are making the same payout on average over time.