Cashing in a small pension versus waiting for a pension
Hi Terry,
I was offered a pension buyout ( under 20K) and wondering what to do. The monthly pension amount is about $110/month. I am 63 years old and it was one of my first jobs, 1980-1986.
I will be receiving a couple of other pensions and hoping to delay receiving Social security for as long as possible. What do you advise? I am also thinking about the taxes that I would have to pay. Thank you for your time and it is always great to see you on WGN!!
Terry Says
Interesting question and difficult to answer as I don’t know your tax situation. If you think you will be in a lower tax bracket this year than in the future, this is the one time I might consider cashing in that small pension — so you can wait till full retirement age to take SS. Remember, this pension check won’t grow with inflation — but your SS will grow and delaying till FRA makes a huge impact on not only your base SS check but on future inflation adjustments.
