My pension has a Social Security Leveling Option, and I am trying to decide if this makes sense.
I want to retire at age 62
The Social Security Leveling Option can make sense in certain situations. However, there can be some drawbacks to using the Social Security Leveling Option. Obviously, if you have no other source of income, and cannot find a job, you might not have a choice. However, if you DO have a choice, these are my thoughts:
At age 62, you generally still have the ability and wherewithal to potentially find a job, be flexible with your spending, and adapt where necessary. As you age, however, your options become more limited. Due to health issues, you may be forced into assisted living or require in-home care. At some point, you will no longer be able or willing to work. And absent some strong support from family, your living situation may be limited as well.
What actually makes the most sense is to map out both scenarios (or all the scenarios you are considering), including when to take Social Security, when to draw from your retirement funds, and when/if you will stop working. This is really the only way to get a clear picture of how your retirement income will look over the course of your retired life, and if the Social Security Leveling Option makes sense.
| 01.29.16 @ 19:25