urn2bfree
Full time employment: Posting here.
- Joined
- Feb 14, 2011
- Messages
- 853
So my wife - who still works, but changed jobs - got the paperwork from her old job regarding her pension options. In short, she can either leave things as they are and get about $1000 a month (Not inflation adjusted starting 13 years from now), or take a lump sum of about $56,000 (taxable,now or more likely roll into her IRA tax free).
The pension is automatically a 50% Joint and Survivor benefit. If she dies, I get $500/month til I die.
A quick internet search and phone call to immediateannuities.com quotes an annuity purchased on the open market for $56,000 to have a monthly benefit of less than half the pension.
The difference between the pension and an annuity make this such a no brainer in favor of keeping the pension that it seems too easy to me.
Am I missing something?
Btw- her old employer is a Catholic based hospital system - so I think solvency is not a major concern....or is that the part I am missing?
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The pension is automatically a 50% Joint and Survivor benefit. If she dies, I get $500/month til I die.
A quick internet search and phone call to immediateannuities.com quotes an annuity purchased on the open market for $56,000 to have a monthly benefit of less than half the pension.
The difference between the pension and an annuity make this such a no brainer in favor of keeping the pension that it seems too easy to me.
Am I missing something?
Btw- her old employer is a Catholic based hospital system - so I think solvency is not a major concern....or is that the part I am missing?
Sent from my iPad using Early Retirement Forum