Pension Election
Hello Terry,
My husband is about to retire in 1 month. We have to make a decison on which pension option to select. The Marital Pension is $55,176/yr, payable to his beneficiary upon death $29,520/yr.
The 75% Joint Survivor Pension is $49,872/yr, payable to his beneficiary upon death $44,280/yr.
We have no consumer debt, our home is paid for and we have over 1.5 million dollars in investments, a 401K and savings. My question is, which pension option would be the best for our family?
Thank you
Terry Says
How comfortable would you be living on $29,520/year?? Dollars received today will have more buying power, so a lower fixed amount later will be worth less, and less. I’d give up the current $5,000 a year for the future larger payout. The odds favor your longevity. But the insurance company actuaries have done their work, so likely there isn’t much actuarial difference. The real difference is the “sleeping at night” difference if you become a widow.
