As I previously mentioned, I will be collecting a State Pension in addition to Free Healthcare (via our State's health plan @ age 60.). Over and above this, I have an IRA, 401k, paid off house, etc.
My question has to do with the defined pension benefit. There are 2 options to choose from:
1. Take a flat monthly amount at age 60 - say $1,500 for the rest of my life (+ cola,) or
2. Take an adjusted higher amount that pays me the equivalent of SS + pension for two years and then the pension is reduced it at age 62 so that my monthly payment is blended so that I receive the same amount (+ cola) for the rest of my life.
In essence, the State is giving me the option of collecting an additional amount from 60 - 62 until SS kicks in.
Option 2 covers all of my budgeted costs (with ease) and I could use income from another source for travel and or emergencies. I also smoked for 30 years so my life expectancy should be a little less than the norm.
Lastly, I wouldn't even consider the option if I opted to get involved in some lucrative "side hustle," where I saw that I would create additional taxable income.
Michael
My question has to do with the defined pension benefit. There are 2 options to choose from:
1. Take a flat monthly amount at age 60 - say $1,500 for the rest of my life (+ cola,) or
2. Take an adjusted higher amount that pays me the equivalent of SS + pension for two years and then the pension is reduced it at age 62 so that my monthly payment is blended so that I receive the same amount (+ cola) for the rest of my life.
In essence, the State is giving me the option of collecting an additional amount from 60 - 62 until SS kicks in.
Option 2 covers all of my budgeted costs (with ease) and I could use income from another source for travel and or emergencies. I also smoked for 30 years so my life expectancy should be a little less than the norm.
Lastly, I wouldn't even consider the option if I opted to get involved in some lucrative "side hustle," where I saw that I would create additional taxable income.
Michael