Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Old 12-23-2015, 06:04 PM   #21
Dryer sheet aficionado
emerytura's Avatar
Join Date: May 2014
Location: Far Hills
Posts: 40
I will vote for survival option. The other alternative can be life only, but to use portion of the money to buy lifetime insurance. We decided not to have lifetime insurance, instead we took both of our private pensions with 50/50 survival option.
It looks like you have enough saved, but life can be very unpredictable and having guarantee payments to the rest of your life can be a blessing.

Sent from my iPad using Early Retirement Forum

emerytura is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 12-24-2015, 06:26 AM   #22
Thinks s/he gets paid by the post
kcowan's Avatar
Join Date: Jul 2006
Location: Pacific latitude 20/49
Posts: 4,438
Send a message via Skype™ to kcowan
Originally Posted by Sunset View Post
So taking the 3/4 survivor wins if you both live normal expected life spans and it wins even more (like insurance) if your husband dies early.
or if either of you outlive the insurance company assumptions.

(My Dad won the lottery, taking his pension at 65 and then living until 95! I took a reduced pension at 49 and so far have collected over $1.4 million. Apparently, actuarially, I should have died 5 years ago. So every year is bonus territory.)

For the fun of it...Keith
kcowan is offline   Reply With Quote
Old 12-24-2015, 03:56 PM   #23
Full time employment: Posting here.
Join Date: Jun 2014
Posts: 540
My hubby and I both have small pensions and took the survivor option on both. It was cheaper then life insurance and we wanted both of us to be protected. My Dad did this too for my Mom which worked out well because she lived 20 years longer then him.
Teacher Terry is offline   Reply With Quote
Old 12-24-2015, 04:23 PM   #24
Thinks s/he gets paid by the post
nun's Avatar
Join Date: Feb 2006
Posts: 4,331
It's rare for a couple to take a pension without some survivor benefit for good reason. Even in your comfortable circumstances the early death of your spouse would be a big financial hit so I'd take the insurance of the 3/4 survivor benefit.
"The needs of the many outweigh the needs of the few, or the one." - Spock
Retired Mar 2014 at age 52
Target AA: 70% equity funds / 28% TIAA-Traditional/ 2% cash
Target WR: 0.0%,
Income from pension, rent, and eventually SS
nun is offline   Reply With Quote
Old 12-24-2015, 05:48 PM   #25
Dryer sheet aficionado
Join Date: Jan 2013
Posts: 46
How long have you been married? I am going through the exact same process now. Everything is identical to your situation except our portfolio is about 1/3 of yours and my pension is $72,000~/yr. My SO and I have been together 14 years. My pension is based on my 32 year career, so I selected a 50% survivor benefit ( worth 16 years) at a cost of $5,700/yr. So I'll get a pension of $66,300~ and my survivor will get $33,000~\yr for life after I die. I am 58 and he is 52. If we both die at 88, it will prove to be a good investment (more likely I'll die sooner and he'll die later, based on family history), which makes it an even better investment. Add to that the ability to do higher Roth conversions, and it's an even better deal. He'll also get a mortgage-free house, my significantly higher SS survivor benefit, and about $700,000 estate. This seems to be the fairest arrangement for us.

Sent from my iPad using Early Retirement Forum
"It is not the man who has too little, but the man who craves more, who is poor" Senaca
Siestatime is offline   Reply With Quote
Old 12-28-2015, 06:49 PM   #26
Recycles dryer sheets
Join Date: Feb 2013
Posts: 62
We each had pensions and each went with the 100 percent survivor benefit. It resulted in a 17 percent pension reduction for each of us. We also are doing the 62/70 SS benefit with me taking spousal on hers at 66. Mine is the larger of the benefits and hers is greater than fifty percent of mine. The bottom line for us was the combined maximum income for the surviving spouse. Our pensions have COLA's and we have good investments. At current costs and projections the survivor could easily pay for quality nursing care out of fixed income and that was/is important. It also enables us to make solid continuing investment contributions.

Sent from my iPad using Early Retirement Forum
TuborgP is offline   Reply With Quote
Old 12-28-2015, 07:28 PM   #27
Full time employment: Posting here.
Souschef's Avatar
Join Date: Dec 2015
Location: Santa Paula
Posts: 513
The best comment is YMMV. My wife is 5 years younger than me, but her parents died in their 80's and my mom just died at 102.
The pension I got was small (1200/mo), plus she has a small pension and survivor's SS.
It did not make much sense to take any survivors benefits with my pension.

Retired Jan 2009 Have not looked back.
AA 95%/0/5
WR 2% SI 2SS & 2 Pensions
Souschef is offline   Reply With Quote

early retirement, pension

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
File and Suspend SS ...specific circumstance stephenson FIRE and Money 10 11-09-2015 06:37 AM
PENSION: LIFE ONLY vs 100% SURVIVOR misty57 FIRE and Money 51 06-12-2012 05:05 PM
LBYM Can Be Dangerous If Applied In The Wrong Circumstance haha Other topics 33 07-12-2009 06:53 AM
Life only annuities GTM FIRE and Money 4 10-11-2004 01:44 PM


All times are GMT -6. The time now is 05:26 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.