Should you claim your pension early or wait?
Should you claim your pension early or wait?
www.mpg.de
Should you claim your pension early or wait?
In the U.S., the monthly payments increase the longer one works—researchers have now examined whether delaying retirement is financially worthwhile.
- Earlier retirement: Researchers have analyzed data from the United States to examine whether retiring earlier is worthwhile.
- Findings: The study shows that the financial risk of delaying retirement particularly affects men and low-income groups in the U.S.
- Making the most of it: For sick individuals in the U.S., retiring early can help them receive some of the benefits they paid for—even if they do not have long to live.
Curious word choice. I know of no company still offering pensions, and I don't know anyone that has one. The article talks about social security, does that pass as a pension these days?
A lot of union jobs have optional pensions as do a lot of government jobs. As a total number of jobs not much but enough to matter.
Pensions are still a thing in some industries, and especially in government work
Although most Americans don't tend to refer to Social Security as a "pension", it does function very similarly to a "public pension", insofar as providing income during old-age as well as disability and survivorship benefits. And outside the context of government workers (eg state employees or teachers) who still have actually public pensions, I don't see it as confusing to refer to the publicly-administered Social Security system as the national pension system, even if not as extensive as other systems abroad.
This is especially true when comparing to "private pensions", which in the past might have referred to pensions operated by a private company and with whom a worker might have been a lifelong employee. But with that model mostly disappearing except for maybe railroads and certain other industries, the term can now reasonably refer to 401(k) plans, which are managed by the individual, and is more common than actual pensions from a private company.
So yeah, it's not colloquial American English, but I think personal finance circles would understand that "pension" can encompass a wide range of things.
It's not really a pension though. A pension is a retirement product based on how much was paid into it, and there's often an option to cash it out instead of taking distributions. Social Security is a welfare product that, while tied to how much you put in, provides more value to the poor vs the wealthy and there's no option to cash out.
The main similarity is that it pays out monthly once you start taking it, but it functions very differently. If you consider SS to be a pension, does that mean an annuity is also a pension? Because again, that's a very different product.
It's from a German university, could be their default translation. In Europe, I think the default adjective for a retired person is pensioner, regardless of whether or not they actually have a pension.
I work at a fortune 250 company and we have a pension. I don't know if it's good or not as we also have a 401k, but we have it.