What is a level income option?

If you chose the Level Income Option (LIO) at your retirement you agreed to receive a higher retirement benefit from your retirement date until age 65, and a reduced amount for the rest of your life.

Is level income a good idea?

Leveling pension plans can be an excellent option for those who are retiring early and looking to boost income during the beginning years of retirement. Whether or not it is a prudent financial decision depends on your personal situation and a number of assumptions.

What is age 62 level income annuity?

Social Security Leveling is an annuity option that allows participants to receive a level income before and after age 62. The retiree receives a larger pension benefit prior to age 62, but then the pension benefit is lowered at age 62 when the individual is expected to claim Social Security benefits.

How is Social Security leveling calculated?

Social Security Leveling Benefit payments are calculated using a Social Security estimate, which a member would normally receive at full retirement age. Members will need to provide a Personal Earnings & Benefit Estimate Statement (PEBES) from the SSA based on the date that they will be terminating LEOFF 2 employment.

What does leveling mean in retirement?

How much is my pension if I retire at 62?

For example, the AARP calculator estimates that a person born on Jan. 1, 1960, who has averaged a $50,000 annual income would get a monthly benefit of $1,338 if they file for Social Security at 62, $1,911 at full retirement age (in this case, 67), or $2,370 at 70.

What is Social Security leveling and how does it work?

Can I collect Social Security at age 55?

You can start receiving your Social Security retirement benefits as early as age 62. However, you are entitled to full benefits when you reach your full retirement age. If you delay taking your benefits from your full retirement age up to age 70, your benefit amount will increase.