Tree-dweller
Recycles dryer sheets
- Joined
- Jul 8, 2011
- Messages
- 402
Greetings! I am retiring at end of November and am looking at my pension options. My plan offers COLA at 1 point less than CPI-W, i.e. if CPI-W is 3%, COLA is 2%. There is an option for 100% COLA, for a reduction in monthly payout, natch. Kicker is, I'm retiring at age 58, and neither the regulat COLA nor the 100% COLA would start until age 62. Kick #2 is that I would have to start the reduction in payout NOW for the 100% COLA to be in effect at age 62. I ran numbers, and it seems like the 100% COLA option would start to truly payoff (meaning break-even for reductions ages 58 - 61) at around age 70, in about 12 years. My gut is to say it's not worth it, but I'm interested in what others think / have experienced. Once the break even point is reached, that one percent sure can make a diff, but I'll be miffed by the reduction in my pension for those first 12 years.
Thanks!
(Sweet December, here I come!)
Thanks!
(Sweet December, here I come!)