No. of Recommendations: 1
Delay taking the pension until the next year.

According to the numbers she gave us, we'd gain only $21/month by waiting to collect the pension till age 65 (there's no additional benefit beyond 65)--why it's so much less than 6% I can only partially explain by the fact that delaying collecting the pension means losing the benefit of adding unused days off to your service time. The group disability policy provides full-retirement-age (65) pension at whatever age you take it. But it doesn't account for the years of raises you miss by being disabled/retired, it's based on your salary at the time.

If you don't have savings to cover that, think about a home equity loan. You should be able to get those for a fraction of that six percent.

I do have savings enough, but...

(a) I'm not convinced this would be a great use for ~$800/month for the delay for the tiny gain of $21/month, especially since the state pension COLA is capped at 1%/year. (I do think the SS reboot might be a good use of savings as that would give us an 8% raise that does have a decent COLA, at least it does now-).

(2) I'm one of those crazy coots who says nyet to debt in retirement. One reason is the big slash in income when one of us dies--I wouldn;t want to be left holding the bag--or dH either. Plus the only financial advice my Mom gave me growing up was "avoid finance charges," it became kind of in-grained, which left me with a horror of debt in general. My last car loan was a 2-year loan after putting 1/3 down (and I counted down the months till it was gone!). I've never taken out a home equity loan, and whenever we refinanced for a better rate, never took money out of the house. So we were able to pay cash for our current house 10 years ago, and did.

But I thank you for the suggestion and think it will be helpfull to others on the board whose circumstances (and level of comfort with debt) is different than mine.

My husband's speaking ability seems to have taken a miraculous turn since the retirement meeting. I asked him if his speech problem totally vanished, would he still want to retire at the end of this semester. He unhesitatingly said, Yes! 10 years at his second career has been enough. He is content, I am content :-)
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