I worked for a CALPERS agency for 12 years but have since left. It's my understanding that my retirement will be based on my last year of employment salary when I left, meaning that the amount is essentially frozen at $100K. Therefore, the salary amount is frozen at $100K and I don't get any COLA on that amount.
I have the option to retire at 52 at 2% meaning the final calculation would be .24 * $100K or retire at 55 years at 2.7% meaning .324 * $100K per year. However, if I retire at 52%, I'll start receiving the COLA 3 years earlier than if I retire at 55. The COLA is around 2%.
I'm not good at math so my question is which is better: Retire at 52 with reduced benefit but get 2% COLA sooner or wait till 55 and get 2.7% but lose any COLA for 3 years to the salary amount.
Hope that makes sense.
Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
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