CS Alpha early retirement factors
In true MSE style, I've been studying the CS Alpha early retirement factors (yes, I know they are about to change) and am wondering if I have spotted an exploitable anomaly:
For most NRA's the factor for taking your pension 1 month early is 0.998 (a drop of 0.002) which seems like an anomaly when the other monthly differences are typically 0.004-0.005.
If I had a £12,000 pension and took it one month early, reducing from £1000/month down to £998/month, without considering indexation it would take 998/2 = 499 months, or 41.58 years for the system to break even.
I think I'll be taking my pension 1 month early - every little helps!
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