Louis2
Recycles dryer sheets
- Joined
- Jan 20, 2014
- Messages
- 58
I have a relative who will be turning 55 this fall. They are considering taking their private pension at 55 (early) versus waiting until “full retirement age” of 65. The pension plan website provides preliminary estimates of the benefit for various scenarios. The benefit increases every year that commencement is delayed up to Age 65. I was expecting (and explaining) that the values would be actuarily equivalent, but now I’m not so sure.
As the simplest example, under “single life annuity”, the value provided at Age 55 is $2870 per month for life. The value provide at Age 65 is $3680 per month for life.
I don’t want to embarrass myself by explaining all the math I’ve attempted to check this, but does this spread look reasonable?
As the simplest example, under “single life annuity”, the value provided at Age 55 is $2870 per month for life. The value provide at Age 65 is $3680 per month for life.
I don’t want to embarrass myself by explaining all the math I’ve attempted to check this, but does this spread look reasonable?