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We chose 50% survivor benefit, we are the same age, so it did not reduce our monthly by much.
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My retirement includes a 50% survivor continuance with no reduction so I chose no additional deduction. There is significant longevity in the women in my family so my husband will have to make the 50% plus his SS work if I die before him. We do have a term life policy as well through my union, it isn't much 150K on me and half on him (+100K AD&D) but it will cushion the blow if one of us dies before 70.
Hey all. I'm still a few years away from this decision. I was wondering what choices some of you have made, or what advice you care to share on the matter.
So, when my pension kicks in I can choose to take the full pension amount. When I die, the pension goes with me. A lot of my co workers take the full amount and purchase a whole life policy. My age of leaving this job is going to be between 53-56 years old.
My other options include taking a significantly reduced pension ($7000) for my spouse to get the same amount upon my death.
I can also choose for my spouse to receive 50% of my pension for a slightly reduced amount.
We have other monies socked away in 457's and Roth IRA's .
Thanks
We faced a similar issue with a $10K difference between a single pension recipient and a joint pension and chose to buy a sizable term life policy for far less than $10K difference (plus the pension has built-in COLA's).
At your age, a concern might be a limited term (20-year?) life policy that expired before your expected demise. Another is inflation-eroding the future value/buying power of the policy- particularly if your spouse significantly out-lived you (but, that could also be the case with a pension that had no COLA's). Other factors may be your overall life-expectancies and even the long-term likelihood that the insurance company will still be there to make the payout.
My Dw will keep the healthcare package after I die.
Her choice was whether to put a portion of my pension into a survivor benefit package, that determines how much pension she could get from how much of my pension she puts into it. [the more of my pension she puts into her survivor benefit package, nets her more in her pension]. She opt'ed for zero.
We chose 100% survivor pension. When one of us passes the only reduction in income would be my social security as it is the lower amount. That way neither of us will have a reduction in lifestyle. We have pension, social security, and investment accounts.
I did the same.
100% of all my retirement income decisions have been made under the assumption that I will die first so I would leave my wife in the best possible financial shape.
100% of all my retirement income decisions have been made under the assumption that I will die first so I would leave my wife in the best possible financial shape.
Me too.
Plus if I die first my wife loses health care. In addition I can live on less money than my wife for many reasons.
All told I plan to leave her 100% of the pension. It will be a 12% reduction. To make that up plus cover for the loss of our COLA I plan to stay an additional 2 years.
That increases my base pension plus my social security and reduces the draw down time of our other investments.
It helps that I love my job and have an easy commute
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