Defined Benifit Option

[yakers]

My wife was just sent an option by her CALSTRS retirement system. She currently receives $2,200 a month. We had already selected a retirement option for me to receive a 50% successor benefit option. For some reason the state has sent out a new option for its successor benefit. The new offer is $2,100 a month but with a 75% successor rate.

I am not inclined to change anything and neither the $100 a month now or the additional $550 later on is critical in any way but I cannot figure out which is the better option. How do you clever folks who understand annuities and other payment systems figure these things out?

[jdw_fire]

Quote:

Originally Posted by yakers My wife was just sent an option by her CALSTRS retirement system. She currently receives $2,200 a month. We had already selected a retirement option for me to receive a 50% successor benefit option. For some reason the state has sent out a new option for its successor benefit. The new offer is $2,100 a month but with a 75% successor rate. I am not inclined to change anything and neither the $100 a month now or the additional $550 later on is critical in any way but I cannot figure out which is the better option. How do you clever folks who understand annuities and other payment systems figure these things out?

Just run the two options through the Vanguard annuity quote SW on their website and see which of the two options would cost you more money if you had to buy them.