Options for increasing pension benefits before retirement age

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Pension, Retirement, Benefits, Interest, Savings Account, Credit Cards

Question: I am 47-years-old and eligible to receive my pension in 4.5 years. That pension will only give me $4,300/gross monthly if I decide to receive a benefit before the government’s legal retirement age. If I suspend my benefit to the IRS retirement age, I can increase my benefit to $5,000/gross per month. I only owe $180,000 on my house at 3.25% interest and I don’t have a second mortgage. I have $419,000 in a high-yield savings account that’s getting a 4.9% APY.

Should you get a financial adviser? Maybe. A lot of what you’re presenting are arithmetic problems that are objectively answerable and could possibly be done yourself. “The question is really whether or not you have the skill to run through all the different scenarios,” says certified financial planner Robert Persichitte at Delagify Financial. “It seems complicated enough that the cost of an adviser seems worth it.

Carefully consider whatever recommendations you receive from the adviser you speak with — and get a second opinion from someone with a different philosophy. Then, hear both out so you can get all the facts, says certified financial planner Blaine Thiederman at Progress Wealth Management. “A financial planner who has their CFP and sufficient experience to help you figure out what you should do next would be helpful,” says Thiederman.

Certified financial planner Joe Favorito at Landmark Wealth Management says he’s not a believer in actively managed stocks. “A good adviser will manage the overall risk profile for you.”

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