When I tell people I have a pension from a private sector job early in my career, I am greeted by oohs and ahhs. Yes, I am one of the lucky few who will receive a pension when I reach retirement age in about 12 years. Recently, I was given an opportunity to cash out my pension. Here is my offer:
Receive $60,000 now (subject to taxes) or wait until 65 and receive $2000/month. My first reaction is to turn the offer down as simple math tells me if I live just two years beyond 65 I am better off waiting. This weekend I discussed the choice with several people and received very different advice: half said take the money now and invest it and the other half said wait. I would love to hear thoughts from the SUM180 community. Should I cash out or wait?