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I will be 59 and 4 months old when I retire May 1st.
These are my pension options. I ran the numbers on each option giving myself a life expectancy of 86. I did not want to go further with my age even though I realize I can live longer.
( Value at age 86)
1) Single Life Annuity $2095 monthly for life = $670,400
2) Single Life Annuity
with age 62 level income $2807 until 12/01/2016
$1935 01/01/2017 until death = $646,880
3) Single Life Annuity with age
66 level income $2765 until 12/01/2020
$1600 01/01/2021 until death = $605,200
If I choose the Single Life Annuity I will need to withdraw $1,000 a month from savings from age 59-66. The more I receive early on, the less I have to withdraw from my savings. Also, with inflation to consider the pension will be worth a lot less as time goes on. There is no cost of living increase on my pension. I am leaning toward the age 62 Level Income Option. What do you think?
One more thing to consider. I have enough money saved so any option will not cause a financial hardship.
At 66 I will file a restricted application on my ex husband's social security and get 1/2 of his full benefit. His full benefit is $1900. (He filed at 62 but that shouldn't affect me). At 70 I will file for my own social security which will be $2700.
Option One clearly looks like the best. 2&3 have that $900 drop in monthly income and that will hurt when it happens. It is better to have your income increase (due to SS) after being used to a certain level
I will be 59 and 4 months old when I retire May 1st.
These are my pension options. I ran the numbers on each option giving myself a life expectancy of 86. I did not want to go further with my age even though I realize I can live longer.
( Value at age 86)
1) Single Life Annuity $2095 monthly for life = $670,400
2) Single Life Annuity
with age 62 level income $2807 until 12/01/2016
$1935 01/01/2017 until death = $646,880
3) Single Life Annuity with age
66 level income $2765 until 12/01/2020
$1600 01/01/2021 until death = $605,200
If I choose the Single Life Annuity I will need to withdraw $1,000 a month from savings from age 59-66. The more I receive early on, the less I have to withdraw from my savings. Also, with inflation to consider the pension will be worth a lot less as time goes on. There is no cost of living increase on my pension. I am leaning toward the age 62 Level Income Option. What do you think?
One more thing to consider. I have enough money saved so any option will not cause a financial hardship.
Quote:
Originally Posted by organic_donna
At 66 I will file a restricted application on my ex husband's social security and get 1/2 of his full benefit. His full benefit is $1900. (He filed at 62 but that shouldn't affect me). At 70 I will file for my own social security which will be $2700.
If you take Option 2, you'll still have a few years to wait until SS kicks in.
If you take Option 3, SS should kick right about where #3 ends.
But since you say "I have enough money saved so any option will not cause a financial hardship", what's stopping you from taking the larger total payout in Option #1?
If you take Option 2, you'll still have a few years to wait until SS kicks in.
If you take Option 3, SS should kick right about where #3 ends.
But since you say "I have enough money saved so any option will not cause a financial hardship", what's stopping you from taking the larger total payout in Option #1?
One word: Inflation. Those dollars are worth more now than they will be in the future.
At 66 I will file a restricted application on my ex husband's social security and get 1/2 of his full benefit. His full benefit is $1900. (He filed at 62 but that shouldn't affect me). At 70 I will file for my own social security which will be $2700.
What are you basing the 2700 on? SS estimates are based on you continuing to earn at least as much as you are earning now for all the years up until you file. If you are stopping work in May at 59 then you will not have that income from 59 - 70.
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