take pension or not..Help?

[jwr62]

This ^^ is the right framing...

thanks for all the reply"s we will wait to take

 

[Running_Man]

I get a joint annuity with no survivor benefit for $267 a month to cost $78,000. As far as better than SS, no it is not nearly as good a deal as there is apparently no inflation index. But still I think purchasing the $78,000 annuity for 40K+ is a very good decision.

 

[Travelfreek]

I agree to leave a year early. We have 2 people from our cruise of 9 (May 2017) who have died or are dying..only in mid 60's. We know 2 others in 60's with critical cancer.. Life is short. Don't wait to enjoy while healthy! My husband is retiring @ 59 in late June since his job is also very stressful. Not worth working another year for about $350 a month after taxes. We get free healthcare and have $128k in pensions plus a good amt in 403b/IRA/457 (750k). We will not need the deferred comp with the pensions. Also SS will be added to that in a few years. We've put off traveling and we are now going to relax and enjoy our lives.

 

[Out of Steam]

... a 7.3% payout rate... better than anything commercially available. Slam dunk... easy decision.

There is one caution on this. It is not actually a 7.3% return, since the delayed pension will be paid for one less year.

Assuming a 25 year payment period (fairly realistic for a healthy middle-class 65 year old), that is 4% fewer years--so roughly a 3.3% return.

I'm probably delaying my Social Security to 65 or later, but am thinking of it as longevity insurance at a decent price rather than a compelling financial deal. Not eating cat food at 85 is a more important goal than collecting the most total money.

 

[Another Reader]

Have you priced cat food recently? I think folks may be "trading down" to Old Roy dog kibble if it comes to that.