- posted 9 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 for life.
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.