Quote:
Originally Posted by Rainger99
I have to make a decision on my pension.
I have the following options.
Please note that x changes below.
Single life annuity. I get x every month until I die.
10 year certain amount and life annuity. Pays out for my lifetime and fixed amount for 10 years. X here is about 94% of single live annuity.
50% joint and survivor annuity. I get x for my lifetime and wife gets .5x for her life. X here is 87% of single live annuity.
75% joint and survivor annuity. I get x for my lifetime and wife gets .75x for her life.
X is 81% of single live annuity.
100% joint and survivor annuity. I get x and my wife gets x for her life. X is 76% of single live annuity amount.
Lumpsum. A lumpsum payment. This would amount to 124 months of the single live annuity.
I am thinking the best choice is a lumpsum payment.
On all of the other choices (except for the 10 year certain amount and life annuity), if my wife and I die in a car crash a month after taking the pension, I am leaving a lot of money with the company. On the other hand, if we live 30 more years, we would do pretty well with the 100% joint and survivor annuity.
Any recommendations or suggestions? Thanks.
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Quite a few variables to consider to include current health and age, financial picture, assets, etc. I can share our experience with this when my husband retired. gets His pension amount is 60% of his annual salary. That doesn’t change. Our decision was we could buy an annuity of any percentage of his pension which will only pay me(wife) if he dies first. Our financial advisor suggested to buy as much as we could afford based on our ages and other factors. We decided to buy 100% because I didn’t have a pension. So no matter what happens we are both good. Hope that helps.