Starting small non-COLA pension

[rodi]

I had a similar situation to OP - except it was two small pensions.... no COLA. The delta between taking it at 55 vs 65 was small - and since there was no COLA inflation would likely eat most of that payout difference.

I started mine at 55. No regrets. The pensions are small (about $5500/year combined) but they provide a baby 3rd leg of my 3 legged stool and it's nice to see the money hit my checking account each month.

 

[PERSonalTime]

Now, now, now! Get your money and have fun!

 

[Travelfreek]

My brother has a decent COLA infused pension and is age 65 1/2 (retired 5 1/2 years ago). He was hellbent to wait till FRA (66) to pull trigger on SSA. He was just diagnosed this month with metastatic cancer. He's going to start SSA now. Crazy how life can change so fast. Makes me reevaluate all my plans and lifestyle.

 

[sengsational]

Here's a report on my progress so far....

I was out of town for a while, but finally called Fidelity.

They apparently run the same estimates that are available on the web site and let you pick one of the many choices, then mail it back. I haven't got the paperwork in the mail yet, but the web site shows some choices:

• 100% Joint & Survivor
• 100% Joint & Survivor Restore
• 75% Joint & Survivor
• 75% Joint & Survivor Restore
• 51% Joint & Survivor Restore
• 50% Joint & Survivor
• 50% Joint & Survivor Restore
• 25% Joint & Survivor
• 25% Joint & Survivor Restore
• Single Life

I need to look-up what "restore" means. The "restore" version monthly benefit is less than the non-restore version. It varies with the percentage. The 100% restore is 1.8% less, 50% restore is 1.4% less, 25% restore is 0.5% less.

EDIT: I think "restore" means if DW dies before me, the benefit stays at 100%.
EDIT2: On second thought, if that were the case, 100% J&S would be the same as 100% J&S Restore. Hmmm.
EDIT3: According to this, "restore" means "restore to single life" and only means something if DW dies first. So in actual numbers, for the 100% J&S restore, we'd get $685.22/mo. If I died first, that payment would continue for her, but if she died first, the amount would get "restored" to the single life amount of $799.15. I don't get why getting more money under that circumstance would be worth much.

 

[sengsational]

The paperwork still hasn't arrived, but one more step I did was to put DW and I into a detailed life expectancy calculator. She's a bit older than me and doesn't have great longevity in her family, so I kind of suspected what I found: she's not expected to last as long as I am. Also, I did a spreadsheet with various ages and determined that she would have to outlive me by quite a long number of years to hit break-even.

This is kind of small potatoes anyway, so we made up our minds that going with "Single Life" was the best move. Not only because of life expediencies, but also because it's non-COLA, I'm trying to get in under the wire on as much inflation as I can.

 

[sengsational]

Just a follow-up. Finally got the first payment. So from "idea" to "money" took 73 days. I'm not sure exactly when my first call went to Fidelity, probably in early February, so probably about 60 days from then until now. There was a lot of back and forth by mail. First I called, they sent papers, I called back, they sent more papers, etc. Kind of drawn-out, but it was a one-time thing.

 

[jazz4cash]

Congrats. I'm going through something similar now but they gave impression it should take ~45 days.