Canoesmith
Recycles dryer sheets
OK. I'm 58, DW is 57. Both in good health. Parents both lived to mid 80's.
I'm retiring on July 5th of this year. That decision is made (although not announced).
I've got my official Defined Benefit numbers from my actuaries - and here are the two choices I am considering.
Pension annuity of $7214/mo with 100% spouse survivorship but NO Cola or
$1,426,000 in lump sum that I can roll over into my Lincoln 403b at fixed 3.5% to start with.
One of the "draws" of the lump sum would be my ability to control taxable income for ACA subsidies - but that is for 7 - 8 years, with 30 years of retirement ahead, so it seems like that reason alone could be short-sighted.
Even with the 100% survivorship my annuity payout appears to be over 6% - so that seems a good deal. But the lump sum is very tempting.
Additional pertinent info. Have another pension that I plan to take in late 2025 that will pay $2000/mo with cola
and If I delay my SS until I'm 70 - my DW and my combined estimate for SS will be ~ $60k/yr.
I have about $1.2M in other monetary/investment assets right now - and absolutely NO debt of any kind with a retirement baseline budget of $72k.
Knowing you are all very good at this I'd love your thoughts - Annuity or Lump Sum?
I appreciate your comments. I have waffled both directions over the past few weeks.
I'm retiring on July 5th of this year. That decision is made (although not announced).
I've got my official Defined Benefit numbers from my actuaries - and here are the two choices I am considering.
Pension annuity of $7214/mo with 100% spouse survivorship but NO Cola or
$1,426,000 in lump sum that I can roll over into my Lincoln 403b at fixed 3.5% to start with.
One of the "draws" of the lump sum would be my ability to control taxable income for ACA subsidies - but that is for 7 - 8 years, with 30 years of retirement ahead, so it seems like that reason alone could be short-sighted.
Even with the 100% survivorship my annuity payout appears to be over 6% - so that seems a good deal. But the lump sum is very tempting.
Additional pertinent info. Have another pension that I plan to take in late 2025 that will pay $2000/mo with cola
and If I delay my SS until I'm 70 - my DW and my combined estimate for SS will be ~ $60k/yr.
I have about $1.2M in other monetary/investment assets right now - and absolutely NO debt of any kind with a retirement baseline budget of $72k.
Knowing you are all very good at this I'd love your thoughts - Annuity or Lump Sum?
I appreciate your comments. I have waffled both directions over the past few weeks.
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