- Joined
- Oct 13, 2010
- Messages
- 10,767
This appears to be a slam-dunk "take it now" but I thought I'd throw out the scenario and let some smarter people have a look.
If I elect to take the pension now, at age 59, it will be $745.23/mo.
If I elect to take the pension at age 65, it will be $891.87/mo.
If I add-up (ignoring inflation) the streams, the age 65 one catches up at age 95.
The tax consequence is that I'll be pulling a bit less from my tIRA/401k to keep PPACA PTC (for as long as that lasts). But it's only $9K/yr, so not big potatoes.
I went over to i-orp and with the age 95 model, the take it now vs take it at 65 did not show any difference in $K/yr. If I reduced the plan duration to age 90, taking it now showed 0.8% benefit to taking it now.
But it seems like all that is noise if one believes that inflation will persist or get worse.
For instance, if inflation is 2.5%, it doesn't catch-up until age 134
I'm having some cognitive dissonance problems, though since I only just now realized that I could have taken this pension at age 55 My earlier understanding was that 65 was the earliest I could take it, so just put it out of my mind.
So anyway, I see no down-side to taking it now. Thoughts?
If I elect to take the pension now, at age 59, it will be $745.23/mo.
If I elect to take the pension at age 65, it will be $891.87/mo.
If I add-up (ignoring inflation) the streams, the age 65 one catches up at age 95.
The tax consequence is that I'll be pulling a bit less from my tIRA/401k to keep PPACA PTC (for as long as that lasts). But it's only $9K/yr, so not big potatoes.
I went over to i-orp and with the age 95 model, the take it now vs take it at 65 did not show any difference in $K/yr. If I reduced the plan duration to age 90, taking it now showed 0.8% benefit to taking it now.
But it seems like all that is noise if one believes that inflation will persist or get worse.
For instance, if inflation is 2.5%, it doesn't catch-up until age 134
I'm having some cognitive dissonance problems, though since I only just now realized that I could have taken this pension at age 55 My earlier understanding was that 65 was the earliest I could take it, so just put it out of my mind.
So anyway, I see no down-side to taking it now. Thoughts?
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