I know a number of people are trying to stay on LTD but in some circumstances, the option to take employment pension early is the better option due to a number of factors: pension is much higher, helps with debt repayment, declining health issues etc. Can you close off with LTD anytime you want to?
My policy says LTD ends when I retire so I could retire early.
Be very, very, very careful though.
What are you thinking re the very very careful?
It’s just usually advised not to end LTD on your own.
You can’t go back to LTD if you forgot something.
Just make sure you have thought of everything.
Thanks Jammer for your advice! You know that my group benefits will automatically end when my employment closes so they are not included in continuing with LTD. Also, I will actually lose $30,000 (net) in extra income over 2 years if I stay on LTD vs taking my pension & I want to pay off all my debt over the next 2 years which can only happen if I get the higher income. So when I hit 65 = debt free hopefully. The other issue right now is that my health is declining & I will probably have to go on infusions. Even if that is covered thru compassionate care I will have extra travelling expenses ++ which will increase my debt via the restricted income - not sure where I would get the extra money. Also the difference I would have in pension by holding off is negagible. I hope my reasoning sounds logical - I do question myself.
Are you still accruing service in the pension plan while on disability? If yes, have you factored into your calculation that your pension would be hire at 65 when you retire. (I just re-read and you said the difference is negligible).
Is your retirement pension reduced by retiring before age 65?
You mentioned loss of group benefits already.
Any chance or a severance if you terminate.
Just a few thoughts. Good luck.
Hi thanks for responding. Due to debt that needs to be repaid it is definitely not advantageous for me to wait another 2 years - I will just be in further debt - with the increased income from my pension I have a plan to be debt free in 2 years. I do have accrual but again I have talked to a financial advisor and I would be okay to close early. It is really my debt that contributes to this decision. My income right now for me is too restrictive and I don’t know how my health issues will go so I also want to have a better income to improve my quality of life now - taking early pension now is still quite good.for me. I do get severance but I am quite sure I will be saying bye bye to that as my contract indicates LTD can offset it. So it will be quite upsetting to give it up but that is how it works - should have got unionized - would not be having this conversation. They are able to stay on LTD, keep their group benefits until 65 and their severance - boy would I have liked that.
Ignore my question in the other thread.
Maybe not if you retire first.