Foolish to delay pension one year?

[pacergal]

Don't pay attention to what other people are telling you!

Have you run firecalc? and does the safe spend amount cover your budget? Be sure to include your pension and future ss income.

Take some time after you leave work to think about what YOU want to do.
If you want another job, look for one once the shock of leaving your 30 year employment has worn off. Maybe you only need/want a part time job or volunteer experience to get you out of the house and have some socialization.

Ernie Zelinski book "How to retire happy, wild and free" is a good read to get you thinking about life after work, living life on your terms and enjoying what you do.

Many folks are forced into early retirement through no fault of their own.
Take some time to decompress, think about what you want to do.
What did you envision in your retirement? Is there any reason you cannot start living that life now?

 

[badatmath]

What did you envision in your retirement? Is there any reason you cannot start living that life now?

I had plans with my now Ex, friends and and pets have died, health is worse. Have not run firecalc in some time. Mostly just forcing myself to show up and be dead man walking until last day so I don't screw that up too. It is going to take awhile I think to be me again.

 

[FIREarly]

IMO, smart, not foolish.

Think of it this way. You forgo $[-]2,200[/-]2,100/month for 12 months so that is $[-]26,400[/-]25,200. But you get $172/month or $2,064/year for the rest of your life. That is a [-]7.8[/-]8.2% payout rate.

According to immediateannuities.com a commercial SPIA for a 56yo male in AZ has a 6.46% payout rate and 6.30% for a female... delaying for a year is a good deal IMO.

Or put another way, $[-]26,400[/-]25,200 would buy a SPIA that pays $[-]142[/-]136 for a male or $[-]139[/-]132 for a female and you would be getting $172. Good deal.

Assumes that you are of average health/longevity.

ETA: Fix my early morning faze miscalculation.

+1 and +1 to many previous posts. Very good topic and info people! Keep it up!

 

[target2019]

Ha being laid off is depressing in and of itself. People are telling me I must get another job and they are not really wrong, both for reasons of money and sanity but IDK. It is still overwhelming.

I've been there, as others have. I thought I was working in my final job. I'd be there for 10, maybe 12, years. Seven years of loyalty got me two bouts of unemployment, and a few weeks salary. The entire process took about two years. Morale sunk, etc. Watched a drunk program manager take on the gov't. On and on the stories went, and it did not turn out well for most...

While on unemployment (NJ) I had time to consider retirement, or not. Ask questions on forums, and get better with projecting tools. It is difficult to compartmentalize at work.

Before long I found remote contract work that paid more than the old job. Actually, the work found me. Then a similar full-time opportunity found me, and it paid 20% more. I was able to reduce days (and pay) over a few years. Had to leave in the end for health reasons after about five years.

People find the other side in due time. It's all very awful in the moment, though. I would hang in for unemployment. To me it sounds like they have a weak case to deny unemployment pay. Maybe find a lawyer to discuss that, and what your rights are.

 

[badatmath]

As my last day draws closer I am more and more worried about this approach. And really everything to do with "retiring" without the money I need.

So of course right get a job but then I freak out there too.

Pretty much a mess.

 

[Philliefan33]

Take a breath. If I am following your pots correctly, you have at least a few months worth of money cushion. Once you leave your current job you will have some time to decompress and figure out your next step.

You might find that you have enough money to stay retired. If not, maybe you only need a part-time job doing something totally new to bring in a little extra. Where I live there are lots of businesses looking for employees, and most of them are willing to hire someone in their fifties with work experience. I’m not talking about experience in the specific task, but just experience holding a job, coming to work on time when scheduled, not calling out at the last minute for silly reasons.

 

[badatmath]

Yeah I was not prepared to be this anxious somehow. . . thanks. The pension is less than my starting salary more than 30 years ago.

 

[pacergal]

I think having some anxiety is normal. You are facing a loss. Give yourself time to grieve, do something fun for yourself in the coming weeks. Then review your finances and decide if you want to look for another job, FT or PT.

 

[Al18]

Now is a good time to book a week or two of vacations. Also a good time to review your expenses. With your new reduced tax burden, you may find you need a lot less to live on in retirement. This forum is a good place to air your thoughts.

 

[badatmath]

So far I definitely regret delaying it as the number of hours I have spent on the phone with the benefits people simply trying to pay for my insurance is incredible. . . You would think I could sign up for direct pay online but no. . .

 

[Out of Steam]

I would take the pension starting when you formally leave. Use the PTO payout to supplement your pension ($2100 less medical) until it runs out. Then next year or whenever PTO money runs out, you can start taking 401k withdrawals since you won't have this year's W-2 income.

This is the way I used my retirement incentive payment when I retired in 2019, as a pension supplement to delay draws from retirement accounts.

 

[bada bing]

I went through an "involuntary severance" 2.5 years ago, with some of the same considerations. You have my sympathy for the hassles and anxiety, but in my case it ended up being one of the better things that happened to me over my career. I hope it ends up that way for you as well.

I am still delaying my pension now at age 64 and will likely delay until age 70 - as allowed by my employer's plan. I was severed with a large cohort of several hundred and as far as I know, I am the only one who didn't either take the lump sum immediately or start the annuity. My pension has very good terms for delaying, similar to yours, and I found it funny that I was the only one that saw it that way. People will make some emotional decisions, the only one your plan has to optimize is you. Let the numbers guide you, not what your fellow stressed work peers are planning.

I immediately started unemployment even though I was offered a transfer in-company to a facility 4000 miles away. All perfectly legal in my state and it was a big help with the transition.

I still have paper work hassles with my retiree medical every month. But the insurance is well worth the hassle. They could definitely streamline the process for both our benefit, but after 2.5 years, it is what it is.

The job market appears to be pretty good now, even for old guys. I have been offered a limited contract return of 1-3 years to my old job on 3 different occasions and also been offered other jobs twice in the 2.5 years retired. I personally am 100% not in the job market anymore, although that is an individual economic situation. You may find, after the dust settles, that you like yourself and your world better as a retiree. I had anxiety over the change, but now see it as a great benefit. Hopefully you find it positive in ways you might not see right now.

 

[MarieIG]

So far I definitely regret delaying it as the number of hours I have spent on the phone with the benefits people simply trying to pay for my insurance is incredible. . . You would think I could sign up for direct pay online but no. . .

My employer offered the "don't let the door hit you on the way out plan." No 401k matches, no retirement benefits.

DH did get a pension (for which we are very grateful), and no, it wasn't handled online. Reams of paperwork which needed to be notarized, mailed in, and then follow up telephone calls.