Telly
Thinks s/he gets paid by the post
- Joined
- Feb 22, 2003
- Messages
- 2,395
At 55, I will be eligible for a very small fixed pension. I can start it at any time between age 55 and 62. To get 100% unreduced payout, I would have to wait till I'm 62.
Taking it at 55, the payments are 76.3% of the unreduced age 62 amount. I have a reduction table, that has from age 55 to age 62 in one month increments. From that table, I have worked out the following year-over-year payment "increase" I would get if I delayed taking it by a year at each step:
56 over 55, 3.7%
57 over 56, 3.8%
58 over 57, 3.9%
59 over 58, 3.9%
60 over 59, 4%
61 over 60, 4.1%
62 over 61, 4.2% Full payment
As the year to year increase is near, at, or could be less than the inflation rate, it seems to me to be a no-brainer to start it in a few years at age 55 . To grab it as soon as I can. Inflation has been chipping away at the purchasing power of this pension for the last 20 years or so.
Is it a no-brainer? Or am I overlooking something?
Taking it at 55, the payments are 76.3% of the unreduced age 62 amount. I have a reduction table, that has from age 55 to age 62 in one month increments. From that table, I have worked out the following year-over-year payment "increase" I would get if I delayed taking it by a year at each step:
56 over 55, 3.7%
57 over 56, 3.8%
58 over 57, 3.9%
59 over 58, 3.9%
60 over 59, 4%
61 over 60, 4.1%
62 over 61, 4.2% Full payment
As the year to year increase is near, at, or could be less than the inflation rate, it seems to me to be a no-brainer to start it in a few years at age 55 . To grab it as soon as I can. Inflation has been chipping away at the purchasing power of this pension for the last 20 years or so.
Is it a no-brainer? Or am I overlooking something?