Originally Posted by retiredncolorado
I took option 1. Also, in Colorado my DW dies first the amount reverts to the option 2 amount. I would imagine California has some similar provisions.
Yes, that is a sub option of both choices I listed. I just didn't want to confuse things past the primary concern of the basic issue.
But, now that that's out of the way and I'm going to select the dual life option, option 1, I now need to decide if it makes sense to go with 1 or 1W
1. Pension covers both our lifetimes.
1W. Pension covers both our lifetimes just like option 1 but if I outlive DW, then it defaults up to the single man's amount.
For option 1W there is a cost of course. It's $50 a month less pension that option 1 and provides an additional $300 in pension to me as the survivor. (5%)
Option 1 is about $6,000 a month and so option 1W is $5,950 a month, with a bump to $6,600 (single man's option) if DW goes first. (a 10% bump up from the dual life option.) It's a coin toss who will outlive who. (Although I do take more risks; ride dirt bikes, street bikes, ski, hunt, lots of power tools, etc)