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Should I take work pension early?

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  • Should I take work pension early?

    I am still working and plan to continue until I save enough to make $60k a year through pension, Social Security payments and interest from savings, or until my health won't permit work anymore.

    The question is, Should I take $622 a month now from former employer's plan in which I am vested? Or wait 9 more years and get $1,178 a month?

  • #2
    Depends, doing the math...
    The difference between the pension now and the pension later is $556. $622 per month for 9 years is $67,176. $67,176 divided by $522 tells us that it would take 10 years from the time you started getting the higher amount 9 years from now to break even from the $67,176 you would have received if you had taken the pension now, before you would be ahead. So, if you feel very confident that you live at least 19 more years minimum, then you could wait. But, I would take it now, either way. If you don't need the money, then invest it and the higher amount won't matter. A dollar now is worth more than a dollar tomorrow with the time value of money.


    • #3
      You might be right, GM.

      The average or median life span of a quad like me is 62.5 years, or something like that. Mmmm... six and a half years and the party's over?

      Plus. a dollar could be worth today's dime by 2017.

      I could invest the money and it could be worth double the $67,176 by 2017, if invested properly.

      Ain't any women to spend it on.



      • #4
        I don't understand the math mumbo-jumbo. This is one of many of my weaknesses ... simple math.

        Doesn't it make sense to work for 9yrs more if your body can take it?

        Only 21 more for me ... *sob* ...
        Roses are red. Tacos are enjoyable. Don't blame immigrants, because you're unemployable.

        T-11 Flaccid Paraplegic due to TM July 1985 @ age 12


        • #5
          I did not know how old you were when I did the math, but given that you would need to live past 75 to be ahead, I would take the money now and invest it. Definitely the right move, esp if you can invest it. I used to be a certified financial planner, so I know what I am talking about. Good Luck! It looks like you are in great financial shape.


          • #6
            I'd love to work another 9 years, Jenn. But who knows what this old SCi body will do in the next decade?


            • #7
              Your having a SCI did not factor into the calculation for me, I would tell anyone to take the money now given those numbers.


              • #8
                facing similar crap myself, i fully agree with gm. working 21 yrs like this is enough. i don't know how much time i have left, but not willing on betting i'll live to 65 or even 55. time for me now

                looking at my finances these past few months, i'm better off taking disability retirement (my job offers this) now. but, make no mistake, i don't plan on doing nothing.

                another reality check: my neighbor is dying from leukemia which she's been battling 15 months. she's just over 50. they are doing hospice now.
                Last edited by cass; 08-02-2008, 12:50 AM.