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Author: vkg Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 120815  
Subject: Re: Tax Planning - Option to Take Pension Date: 1/14/2014 8:02 PM
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The payments are taxed as regular income.

There isn't any special treatment, good or bad.

Since the amount is small, it isn't going to make much difference either way. The calculations used to determine the payments at different ages are such that an average person will receive the same amount, regardless of when they start payments. It all depends on whether or not you believe you will out live the average life span for your age group and if your taxes will drop significantly when you retire.

I keep hearing that it takes 14 years to break even between early and normal starting dates. I haven't verified the calculations, but it seems reasonable.
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