Jill on Money with Jill Schlesinger Evaluating Pension Options
22 snips
Aug 25, 2025 Explore the complexities of pension options and the nuances of survivor benefits in retirement planning. Hear a couple's journey as they navigate various payout scenarios, focusing on the impact of cost-of-living adjustments. The discussion expands to financial preparedness for retirement, emphasizing strategic planning for long-term security. Additionally, gain insights into effective estate planning and the importance of family discussions regarding resource allocation. It's a rich conversation about making informed choices for financial stability.
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Teacher Considering Early Retirement
- Heather, age 48, plans to retire in about 1.5 years and expects $4,600–$4,768 monthly from her pension depending on survivor options.
- She intends to stay active but likely without paid work.
Skip Large COLA Haircuts
- Avoid taking the 2.5% COLA option if it cuts your immediate pension payout significantly.
- Use higher current payouts plus savings to cover inflation risk instead of accepting a large haircut.
Husband's Pension Choices Create A Big Cut
- Heather's husband, in local government, faces big trade-offs: $5,187 with 50% survivor or $3,840 with 50% plus 2.5% COLA.
- The COLA option represents a substantial immediate haircut to monthly income.