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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Be careful not to lose sight of the fact that a pension purpose is to provide security for you and spouse. Choose the option that gives you the best retirement life style possible. Do not take any consideration to leaving money on the table. That type of thinking will sabotage a good plan.