Is there anyone here that can tell me the pros and cons of taking the Level Income Option for early retirement?
I am 56 now, single, been with the same company for 35 years and can't take it any longer! Here are what my numbers look like if I retire at the end of this year using Level Income option.
My normal monthly retirement check would be $3285.....with Level Income option it would be $4209.
Here is the explanation of Level Income option from my company's website.
Under a Level Income payment method, you can coordinate your pension plan benefit with your Social Security retirement benefit. You will receive a monthly pension payment calculated without regard to Social Security until you reach the Social Security leveling income age associated with the payment method. Once you reach that age, your monthly pension payment is reduced by the maximum Social Security benefit that could have been payable to you at the time you commenced your pension benefit. Your monthly pension payment will be reduced at this age even if you delay commencement of your Social Security benefit until a later date. Payments end upon your death unless your Level Income payment method includes a Joint and Survivor or a Guarantee period that has not yet expired.
Thanks
I am 56 now, single, been with the same company for 35 years and can't take it any longer! Here are what my numbers look like if I retire at the end of this year using Level Income option.
My normal monthly retirement check would be $3285.....with Level Income option it would be $4209.
Here is the explanation of Level Income option from my company's website.
Under a Level Income payment method, you can coordinate your pension plan benefit with your Social Security retirement benefit. You will receive a monthly pension payment calculated without regard to Social Security until you reach the Social Security leveling income age associated with the payment method. Once you reach that age, your monthly pension payment is reduced by the maximum Social Security benefit that could have been payable to you at the time you commenced your pension benefit. Your monthly pension payment will be reduced at this age even if you delay commencement of your Social Security benefit until a later date. Payments end upon your death unless your Level Income payment method includes a Joint and Survivor or a Guarantee period that has not yet expired.
Thanks