Couples who's SS payments are about equal face having the survivors' SS income cut in half, and often a higher tax bracket to take even more away.
I can't fathom why that has not been addressed by now, society having moved from one worker to two.
So are there any solutions?
Maybe a "first to die" insurance policy/annuity that pays in installments not lump sum? Other ideas?
A 65 year old female paying $120,000 today gets $1040 a month for life starting in 10 years. A male gets $994 for $100,000. So a price "per thousand" baseline based on an annuity.
So for a couple, it would spend down about half a million to cover SS worth $2000 each, but before that 10 years of inflation.
At 2%/year, that's 0.98^10 = 81.7% so $817 per thousand real.
So about $3200 real but it continues to erode.
Normally insurance keeps gaining cash value.
What about an insurance policy whose value & payout are capped (with a COLA), so after a while the premiums should fall, maybe to nothing; and it is an annuity payable on death to the surviving spouse.
I can't fathom why that has not been addressed by now, society having moved from one worker to two.
So are there any solutions?
Maybe a "first to die" insurance policy/annuity that pays in installments not lump sum? Other ideas?
A 65 year old female paying $120,000 today gets $1040 a month for life starting in 10 years. A male gets $994 for $100,000. So a price "per thousand" baseline based on an annuity.
So for a couple, it would spend down about half a million to cover SS worth $2000 each, but before that 10 years of inflation.
At 2%/year, that's 0.98^10 = 81.7% so $817 per thousand real.
So about $3200 real but it continues to erode.
Normally insurance keeps gaining cash value.
What about an insurance policy whose value & payout are capped (with a COLA), so after a while the premiums should fall, maybe to nothing; and it is an annuity payable on death to the surviving spouse.