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Old 12-23-2015, 07:04 PM   #21
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I will vote for survival option. The other alternative can be life only, but to use portion of the money to buy lifetime insurance. We decided not to have lifetime insurance, instead we took both of our private pensions with 50/50 survival option.
It looks like you have enough saved, but life can be very unpredictable and having guarantee payments to the rest of your life can be a blessing.

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Old 12-24-2015, 07:26 AM   #22
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Originally Posted by Sunset View Post
So taking the 3/4 survivor wins if you both live normal expected life spans and it wins even more (like insurance) if your husband dies early.
or if either of you outlive the insurance company assumptions.

(My Dad won the lottery, taking his pension at 65 and then living until 95! I took a reduced pension at 49 and so far have collected over $1.4 million. Apparently, actuarially, I should have died 5 years ago. So every year is bonus territory.)
For the fun of it...Keith
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Old 12-24-2015, 04:56 PM   #23
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My hubby and I both have small pensions and took the survivor option on both. It was cheaper then life insurance and we wanted both of us to be protected. My Dad did this too for my Mom which worked out well because she lived 20 years longer then him.
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Old 12-24-2015, 05:23 PM   #24
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It's rare for a couple to take a pension without some survivor benefit for good reason. Even in your comfortable circumstances the early death of your spouse would be a big financial hit so I'd take the insurance of the 3/4 survivor benefit.
“So we beat on, boats against the current, borne back ceaselessly into the past.”

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Old 12-24-2015, 06:48 PM   #25
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How long have you been married? I am going through the exact same process now. Everything is identical to your situation except our portfolio is about 1/3 of yours and my pension is $72,000~/yr. My SO and I have been together 14 years. My pension is based on my 32 year career, so I selected a 50% survivor benefit ( worth 16 years) at a cost of $5,700/yr. So I'll get a pension of $66,300~ and my survivor will get $33,000~\yr for life after I die. I am 58 and he is 52. If we both die at 88, it will prove to be a good investment (more likely I'll die sooner and he'll die later, based on family history), which makes it an even better investment. Add to that the ability to do higher Roth conversions, and it's an even better deal. He'll also get a mortgage-free house, my significantly higher SS survivor benefit, and about $700,000 estate. This seems to be the fairest arrangement for us.

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Old 12-28-2015, 07:49 PM   #26
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We each had pensions and each went with the 100 percent survivor benefit. It resulted in a 17 percent pension reduction for each of us. We also are doing the 62/70 SS benefit with me taking spousal on hers at 66. Mine is the larger of the benefits and hers is greater than fifty percent of mine. The bottom line for us was the combined maximum income for the surviving spouse. Our pensions have COLA's and we have good investments. At current costs and projections the survivor could easily pay for quality nursing care out of fixed income and that was/is important. It also enables us to make solid continuing investment contributions.

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Old 12-28-2015, 08:28 PM   #27
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The best comment is YMMV. My wife is 5 years younger than me, but her parents died in their 80's and my mom just died at 102.
The pension I got was small (1200/mo), plus she has a small pension and survivor's SS.
It did not make much sense to take any survivors benefits with my pension.
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