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Old 07-27-2016, 11:52 AM
 
899 posts, read 1,522,539 times
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I had survivor choices with my pension. Take the max and leave my widowed wife with nothing, slight reduction and she gets 50%, options for 75% and 100% for her upon my death.


We are both in good health at 62 and 61 and went with the 50%. Thought is that when I pass she will be well into her 80's and spending less. She had to sign off and the document was notarized, no surprises. If she goes before me I get a slight "bump up".


How did others address this decision?
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Old 07-27-2016, 12:02 PM
 
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I will have similar choices with my pension when I retire. My wife and I plan to take the max of my pension when we retire (most likely in a year). This decision is based on these facts: (1) We are both in good health, and (2) we'll have 8 times our current combined annual earnings in savings when we retire.
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Old 07-27-2016, 12:06 PM
 
Location: USA
584 posts, read 909,047 times
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Quote:
Originally Posted by caco54 View Post
I had survivor choices with my pension. Take the max and leave my widowed wife with nothing, slight reduction and she gets 50%, options for 75% and 100% for her upon my death.


We are both in good health at 62 and 61 and went with the 50%. Thought is that when I pass she will be well into her 80's and spending less. She had to sign off and the document was notarized, no surprises. If she goes before me I get a slight "bump up".


How did others address this decision?
For Federal/Civil Service retirement, right?

I'm not there just yet, my only offspring has a good salary, but I will probably name him the beneficiary.

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Old 07-27-2016, 12:57 PM
 
Location: Los Angeles area
14,018 posts, read 17,744,100 times
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Quote:
Originally Posted by cholo57 View Post
For Federal/Civil Service retirement, right?

I'm not there just yet, my only offspring has a good salary, but I will probably name him the beneficiary.

Lots of pensions have the same or similar provisions for surviving spouses, so it could be any of hundreds of pension plans that the OP is talking about.
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Old 07-27-2016, 01:16 PM
 
Location: Alaska
5,356 posts, read 16,351,037 times
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I took the 75% option as it was the most I could offer. For her pension, we'll go with the 50% option. Going with the single option meant I'd lose the associated medical benefit, while not totally needed, it's nice to be double covered.
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Old 07-27-2016, 01:16 PM
 
Location: North Beach, MD on the Chesapeake
33,898 posts, read 42,143,850 times
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The same way except the current reduction wasn't "slight" but a bit over 35%.
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Old 07-27-2016, 01:49 PM
 
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I had the same option and identical questions as I'm the one with a pension in our family. The insurance person with our financial company ran the numbers and was able to get life insurance on me that is less annually than I would have loss if I had taken 100% survivor benefits. We opted for that. It's a matter of making sure to have/save enough to pay it annually but in the bigger picture it's cheaper. One issue may be age for someone considering this. I literally got in the day before I turned 60 so that helped.
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Old 07-27-2016, 01:51 PM
 
8,204 posts, read 11,918,472 times
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Quote:
Originally Posted by caco54 View Post
I had survivor choices with my pension. Take the max and leave my widowed wife with nothing, slight reduction and she gets 50%, options for 75% and 100% for her upon my death.
How did others address this decision?
Quote:
Originally Posted by cholo57 View Post
For Federal/Civil Service retirement, right?

I'm not there just yet, my only offspring has a good salary, but I will probably name him the beneficiary.

No it's not federal; there are no options for providing 75% or 100% survivor annuities under either the FERS or CSRS federal retirement programs. IIRC, the OP posted in the private pension thread, so we're not even talking about any type of public pension here.
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Old 07-27-2016, 02:12 PM
 
Location: Midwest transplant
2,013 posts, read 4,996,945 times
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Retired teacher; I took the reduced amount so that DH would get the same upon my death. His pension would have been nil in comparison, so he took the lump sum and transferred it to IRA's and Roth's. He's still working, we have quite a bit of money invested to generate income and have no heirs to claim the leftovers. Working with a financial planner opened our eyes to some great options for us.
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Old 07-27-2016, 02:28 PM
 
Location: Central Massachusetts
4,800 posts, read 4,850,322 times
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Quote:
Originally Posted by cholo57 View Post
For Federal/Civil Service retirement, right?

I'm not there just yet, my only offspring has a good salary, but I will probably name him the beneficiary.

MMoB is right that is not a FERS pension. It has to be a private pension. FERS will only do a 50% annuity or a 25% annuity or no annuity at all. Spouse has to sign for anything other than 50% and be notarized.
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