hellbender
Recycles dryer sheets
- Joined
- Jul 14, 2006
- Messages
- 153
From time to time I check the TSP Annuity Calculator https://www.tsp.gov/planningtools/annuities/annuityCalc_select.shtml to determine the value of my CSRS pension.
Based on current interest rates, an inflation-adjusted annuity with a 50% survivor feature paying the same amount as my pension would cost $1,891,600. This blew my mind. Actually, I suppose my pension is worth more vecause its inflation adjustment is not capped and the survivor feature only kicks in upon the death of the annuitant. (The TSP annuity is reduced to survivor level upon the death of either the spouse or the annuitant).
Either my pension is worth much more than I thought or the TSP annuity is a really, really bad deal. The TSP annuity first year payout is only about 3.4% of the principal.
Based on current interest rates, an inflation-adjusted annuity with a 50% survivor feature paying the same amount as my pension would cost $1,891,600. This blew my mind. Actually, I suppose my pension is worth more vecause its inflation adjustment is not capped and the survivor feature only kicks in upon the death of the annuitant. (The TSP annuity is reduced to survivor level upon the death of either the spouse or the annuitant).
Either my pension is worth much more than I thought or the TSP annuity is a really, really bad deal. The TSP annuity first year payout is only about 3.4% of the principal.
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