The discussion of the military Survivor Benefit Plan (SBP) on Nords' recent thread on military insurance got me re-looking just how well my wife will be provided for in the event I predecease her (which, actuarially speaking, I am likely to do.)
Just curious what plans other retirees have made for their surviving spouses' financial situation and what percentage of your current (joint) retirement income they are likely to have to live on.
My disclosures: military SBP and survivor SS will provide about 43% of our current AGI, inflation adjusted. But since we live on about 70% of our AGI, she will have about 60% of our current spending level covered with that amount. I also have a VG variable annuity which she will inherit and, depending on her age and its value when she annuitizes it, it should add another 18% or so (not inflation adjusted), taking her to 78%. She should be able to make up any remaining shortfalls with a sensible withdrawal rate from the portfolio she will inherit. So, barring an unforeseen catastrophe or black swan event, I feel reasonably comfortable that she will be OK.
I'm really interested in what contingency plans others have in place as I'm always happy to reconsider whether or not I've planned as well as I can.
Thanks.
Just curious what plans other retirees have made for their surviving spouses' financial situation and what percentage of your current (joint) retirement income they are likely to have to live on.
My disclosures: military SBP and survivor SS will provide about 43% of our current AGI, inflation adjusted. But since we live on about 70% of our AGI, she will have about 60% of our current spending level covered with that amount. I also have a VG variable annuity which she will inherit and, depending on her age and its value when she annuitizes it, it should add another 18% or so (not inflation adjusted), taking her to 78%. She should be able to make up any remaining shortfalls with a sensible withdrawal rate from the portfolio she will inherit. So, barring an unforeseen catastrophe or black swan event, I feel reasonably comfortable that she will be OK.
I'm really interested in what contingency plans others have in place as I'm always happy to reconsider whether or not I've planned as well as I can.
Thanks.