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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No one can give you a good answer with that information. You described the options available through your company for pension payouts. What you did not mention was your age, your spouses age, the status of your health, how much you have accumulated in your pension account, what savings you have amassed for your own retirement, what you would do if you took the lump sum to protect those assets through the duration of your life, whether your wife is capable of handling those investments, should she be left a widow, and so much more. These are all questions that you need to work through on your own or with a pension professional. You also did not mention any other income that you receive on a monthly basis, which can also factor into your decision. Good luck!