Maybe I am just being a worry wart, but you could be giving the company 5 years to cut the pension again. Maybe a bird in the hand would be something for you to consider. You might want to evaluate taking the money now, but not spending it; instead invest it and let it build over the next 5 years.
I'm inclined to agree with RTW, at least to the extent that your situation bears some further investigation. Even if your spouse's company hadn't already cut his pension twice, pensions have been generally vulnerable in recent decades.
Doing a guesstimate off the top of my head, I'm thinking if you invest the early pension funds as RTW suggests, your spouse's break-even is probably at age 72. But taking the pension early (before social security) also means that it should be taxed at a lower rate between ages 60-65, depending on how long you work. Taking the pension early may mean that you could defer taking social security until after 65. Though the financial advantage isn't as good as deferring his pension, you may be more inclined to trust the US Government, for all its flaws, than your spouse's company.
If you want to provide further details, either to this forum or privately to a financial planner, it should be possible to construct a simple model showing various outcomes for your situation.
Good luck!
