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Top StoriesMarketWatch2d ago

I’m 55 and earn $100,000. Should I take a $2,900 monthly pension — or $2,200 with 3% annual hikes?

“I plan to continue working until age 60.”

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AI SUMMARY

# Pension Decision Analysis for Mid-Career Worker A 55-year-old earning $100,000 faces a choice between a $2,900 monthly fixed pension versus $2,200 with 3% annual increases, requiring breakeven analysis to determine which option maximizes lifetime retirement wealth. The decision hinges on longevity assumptions and inflation expectations—the fixed pension provides immediate income security while the escalating option protects purchasing power if the retiree lives into their 80s or beyond.

Content sourced from MarketWatch. Not financial advice.