Early retirement

by Walter

Hi I am 55, 56 in December I have worked at two companys - one for 10 years the other for 18.

I was laid off from the last 2 years ago and have a pension from both. and was wondering if it would be better to take the cash out option from one or both of the pensions I realize I will still need to work at least part time for a while to make ends meet.

thank you for your opinion. Walter

Wendy: It depends.. but usually you are far better off, in the long run, with a lifetime pension. If you take $10,000 cash -- when it's gone, it's just gone. However -- If you take a lifetime pension at $200/mo, that $10,000 is gone in the first 4 years ($200 x 12 months/year = $2400 per year x 4 yrs = $10,000).

Bottom line: those who are lucky enough for a LIFETIME pension are really lucky. You get it for life. If you retire at 62, with Social Security and two pensions, you might draw that for 20 yrs to age 82, or 30 yrs to age 92! It happens... people outlive their monies all the time but a pension is paid for life.

Play with the amount you'd get "cash" compared to the monthly (or email me with both using the "contact Wendy" on the left bar).. and I'll get back to you!

Best Wishes!!

Comments for Early retirement

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Early Retirement
by: Kathleen

I agree with the other comments, take a little at a time. Remember also that if you pull it all out you may have to pay income tax on the full $10k in the year you take it. Best wishes.

almost the same...
by: ronaldj

i too have been mostly laid off the past two years... worked like five months in 08, 612 hours in 09.....

i have a penson (life time if it lasted) so i took it and it is about half of what we had coming in before... but a steady dime is better then a irregular dollar...

we cut some things, i have picked up a few little jobs, nothing full time but enough...

i would say take the little each month and learn to get by... find a new little job if you have to, make some cuts... oh yes i am 58-59 in Jan.

try it i think you will like it...

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