- posted 10 years ago
I can start taking a pension after my 55th birthday, which is coming up
in the next 6 months. This is a old-fashioned company penson. There is
no cost of living increase for the pension, once it starts it is fixed
If I wait one year, the monthly amount goes up about 5.4%, two years,
10.8%, up until age 62 when it would be 35% higher than age 55. Then
there is no further increase from waiting. I don't have any major
health problems that I know of, so my life expectancy is probably well
over 80 yrs.
I could use this money for living expenses; if I don't take the pension
right away, I'll probably take almost as much out of bank savings each
year, since I am only employed part-time.
I'm also worried about inflation kicking in again someday soon, meaning
the fixed monthly check will be worth less and less. My tax situation
is pretty simple, I'm in the 15% bracket.
Should I wait or start taking the lower amount ASAP? I guess this is a
lot like the question of taking Social Security payments at 62 or 66,
except that SS has a cost of living increase built-in.